Siddhant 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, Siddhant got Rs. 255 as compound interest, considering annual compounding?

Correct option is B

Given:
Principal (P) = ?
Rate of Interest (R) = 4% per annum
Time (T) = 2 years
Compound Interest (CI) = Rs. 255 (annual compounding)
Formula Used:
​$$CI = P\left[\left(1 + \frac{R}{100}\right)^T - 1\right]$$
$$SI = \frac{P \times R \times T}{100}$$​​​
Solution:
​$$255 = P\left[\left(1 + \frac{4}{100}\right)^2 - 1\right]\\\ \\\Rightarrow\;\;\; 255 = P \times 0.0816\\\ \\P = \frac{255}{0.0816} = 3125\\\ \\SI = \frac{3125 \times 4 \times 2}{100} = 250\\\ \\$$​​