The compound interest on a certain some of money for 2 years at 10% per annum is Rs 420. The simple interest on the same sum at the same rate and for the same time will be ?

A. Rs. 350

B. Rs. 375

C. Rs. 380

D. Rs. 400

Answer: Option D

Solution(By Examveda Team)

$$\eqalign{ & {\text{Rate = 10}}\% \cr & {\text{Time = 2 years}} \cr & {\text{Effective rate of CI for 2 years}} \cr & {\text{ = 10 + 10 + }}\frac{{10 \times 10}}{{100}} \cr & = 21\% \cr & {\text{Effective rate of SI for 2 years}} \cr & {\text{ = 2}} \times {\text{10 = 20}}\% \cr & {\text{Required SI}} \cr & {\text{ = }}\frac{{420}}{{21}} \times {\text{20 = Rs. 400}} \cr} $$