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The simple interest on a sum of money at 4% per annum for 2 years is Rs.80. The compound interest in the same sum for the same period is
Options:
A .  Rs.81.60
B .  Rs.82.60
C .  Rs.81.80
D .  Rs.82.20
Answer: Option A
Answer: (a)Principal = $\text"S.I. × 100"/ \text"Time × Rate"$= ${80 × 100}/{2 × 4}$ = Rs.1000C.I. = P$[(1 + R/100)^T - 1]$= 1000$[(1 + 4/100)^2 - 1]$= 1000$[(25/26)^2 - 1]$= 1000$(676/625 - 1)$= 1000$({676 - 625}/625)$= ${1000 × 51}/625$= Rs.81.60Using Rule 10,Here, S.I. = Rs.80, R = 4%, C.I. = ?C.I.= S.I.$(1 + R/200)$C.I.= 80$(1 + 4/200)$= $80(1 + 1/50)$= 80 × $51/50$ = Rs.81.60

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