If the compound interest on a certain sum for two years at 12% per annum is Rs. 2544, the simple interest on it at the same rate for 2 years will be = ?

Solution (By Examveda Team)

$$\eqalign{ & {\text{Rate = 12}}\% \cr & {\text{Time = 2 years}} \cr & {\text{Effective rate of CI for 2 years}} \cr & {\text{ = 12 + 12 + }}\frac{{12 \times 12}}{{100}} \cr & = 25.44\,\% \cr & {\text{Effective rate of SI for 2 years}} \cr & {\text{ = 12}} \times 2{\text{ = 24}}\,\% \cr & {\text{According to question,}} \cr & {\text{Required SI}} \cr & {\text{ = }}\frac{{2544}}{{25.44}} \times {\text{24}} = {\text{ Rs. 2400}} \cr & {\text{Required sum}} \cr & {\text{ = Rs. 2400}} \cr} $$