Compound interest on a sum of money for 2 years at 4% per annum is Rs. 2448. simple interest on the same sum of money at the same rate of interest for 2 years will be = ?

Solution (By Examveda Team)

Time (t) = 2 years
Rate % = 4%
Effective rate of CI of 2 years
$$\eqalign{ & {\text{ = 4 + 4 + }}\frac{{4 \times 4}}{{100}} \cr & = 8.16\% \cr} $$
Effective Rate of SI for 2 years = 8%
According to the question
$$\eqalign{ & {\text{8}}{\text{.16% of sum}} \cr & {\text{ = Rs. 2448}} \cr & {\text{1% of sum}} \cr & {\text{ = Rs. }}\frac{{2448}}{{8.16}} \cr & {\text{8% of sum}} \cr & {\text{ = }}\frac{{2448}}{{8.16}} \times {\text{8}} \cr & {\text{ = Rs. 2400 }} \cr} $$