The compound interest on a certain sum of money at 8% per annum for 3 years is ₹4,058. Find the simple interest on the same sum for 4 years at 10% p.a.

Correct option is C

Given:

Time = 3 year

Amount = ₹4058

Rate of interest = 8%

Formula Used:

Compounded Amount = $$Principle \times (1+ \frac{r}{100})^{t}$$​​

Compounded interest = Compounded Amount - Principle

​$$SI =\frac{P \times R \times t}{100}$$​​

Solution:

​$$4058 = P \times (1+ \frac{8}{100})^{3} -P$$​​

​$$4058 = P ( (\frac{108}{100})^{3} -1)$$​​

$$4058 = P((\frac{108}{100})^{3} -1)$$​

​$$4058 = P (\frac{1259712-1000000}{1000000})$$​​

​$$4058 = P (\frac{259712}{1000000})$$​ 

​$$P = \frac{ 4058 \times 1000000}{259712}$$​​

P = ₹15625

Simple interest = $$\frac{15625 \times 10 \times 4 }{100}$$​​

= ₹6250