Mathematics for FinancePYQ July 21Question 1224 of 512
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A sum of 7,500\displaystyle 7,500 amounts to 9,075\displaystyle 9,075 at 10%\displaystyle 10\% p.a., interest being compounded yearly in a certain time. The simple interest on the same sum for the same time and the same rate is:

Options

A1,000\displaystyle 1,000
B1,250\displaystyle 1,250
C1,800\displaystyle 1,800
D1,500\displaystyle 1,500
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Correct Answer

✅ Option d — 1,500\displaystyle 1,500

All Options:

  • A1,000\displaystyle 1,000
  • B1,250\displaystyle 1,250
  • C1,800\displaystyle 1,800
  • D1,500\displaystyle 1,500

Detailed Solution & Explanation

**Derivation of Simple Interest from Compound Interest** Given: - Principal (P\displaystyle P) = Rs. 7,500\displaystyle \text{Rs. }7,500 - Amount (A\displaystyle A) = Rs. 9,075\displaystyle \text{Rs. }9,075 - Rate of Interest (R\displaystyle R) = 10%\displaystyle 10\% per annum compounded annually **Step 1: Determine the time period (t\displaystyle t)** A=P(1+R100)tA = P\left(1 + \frac{R}{100}\right)^t 9075=7500(1+0.10)t9075 = 7500(1 + 0.10)^t 90757500=(1.1)t\frac{9075}{7500} = (1.1)^t 1.21=(1.1)t  ⟹  (1.1)2=(1.1)t  ⟹  t=2 years1.21 = (1.1)^t \implies (1.1)^2 = (1.1)^t \implies t = 2 \text{ years} **Step 2: Calculate Simple Interest (SI\displaystyle SI) for the same Principal, Rate, and Time** SI=P×R×t100SI = \frac{P \times R \times t}{100} SI=7500×10×2100=Rs. 1,500SI = \frac{7500 \times 10 \times 2}{100} = \text{Rs. }1,500 Hence, **Option D** is the correct answer.

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