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Simple interest on a certain sum of money for 3 years at 10% per annum is half the compound interest on Rs 6000 for 2 years at 10% per annum. The sum placed on simple interest is:

  1. A
    Rs 4200
  2. B
    Rs 2100
  3. C
    Rs 1050
  4. D
    Rs 1680

Solution & Step-by-step Explanation

First, let's calculate the compound interest (CI) on Rs 6000 for 2 years at 10% per annum.
The formula for the amount under compound interest is:

A=P(1+
100
R

)
t

A=6000(1+
100
10

)
2
=6000×(
10
11

)
2

A=6000×
100
121

=60×121=Rs 7260
So, the compound interest is:

CI=A−P=7260−6000=Rs 1260
According to the question, the simple interest (SI) on a certain sum is half of this compound interest:

SI=
2
1

×1260=Rs 630
Let the principal sum for the simple interest be P
s

. The time period is t=3 years and the rate of interest is R=10%.

SI=
100
P
s

×R×t


630=
100
P
s

×10×3


630=
100
30P
s




630=
10
3P
s




3P
s

=6300
P
s

=Rs 2100
Thus, the sum placed on simple interest is Rs 2100.

Practice this question

Try it yourself before checking the explanation above.

Simple interest on a certain sum of money for 3 years at 10% per annum is half the compound interest on Rs 6000 for 2 years at 10% per annum. The sum placed on simple interest is:
A
Rs 4200
B
Rs 2100
C
Rs 1050
D
Rs 1680

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