Govind invested some money in HDFC at 4% per annum rate of interest. What would be the corresponding simple interest (in Rs. ) if after 2 years, Govind got Rs. 280.5 as compound interest, considering annual compounding?

Correct option is D

Given:
Rate of interest (r) = 4% per annum
Time (t) = 2 years
Compound Interest (CI) = ₹280.5
Formula Used:
​$$CI = P\left[\left(1 + \frac{r}{100}\right)^t - 1\right]\\\ \\SI = \frac{P \times r \times t}{100}$$​​
Solution:
​$$\text{CI to find Principal (P):} \\280.5 = P\left[(1.04)^2 - 1\right] \\280.5 = P \times 0.0816 \\P = \frac{280.5}{0.0816} = 3437.5 \\[6pt]\text{Simple Interest (SI):} \\SI = \frac{3437.5 \times 4 \times 2}{100} \\SI = 275$$​​