The compound interest on a sum for 2 years at 5% per annum is Rs. 1,230. What is the simple interest on the same sum at the same rate for the same time?
Correct answer C. Rs. 1,200
Explanation
CI for 2 years = P × 0.1025 = 1230, so P = 12,000. SI = 12000 × 5 × 2 / 100 = Rs. 1,200.
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