The compound interest on a certain sum of money at 5% per annum for 2 years is Rs 246. The simple interest on the same sum for 3 years at 6% per annum is = ?

Solution (By Examveda Team)

$$\eqalign{ & {\text{Effective rate of CI for 2 years}} \cr & {\text{= 5 + 5 + }}\frac{{5 \times 5}}{{100}} \cr & = 10.25\% \cr & {\text{Effective rate of SI for 3 years}} \cr & {\text{= 6}} \times {\text{3 = 18% }} \cr & {\text{According to question}} \cr & {\text{Required SI}} \cr & {\text{= }}\frac{{246}}{{10.25}} \times 18 \cr & = {\text{Rs. 432}} \cr} $$