Answer
397.5k+ views
Hint:As we know that the above question consists of both compound interest and simple interest. Simple interest can be defined by interest calculated on the principal portion of a loan while we can define compound interest as the interest calculated on the principal and the interest accumulated over previous time. In this question the principal is not given, so we will calculate it by the formula of compound and simple interest.
Complete step by step solution:
As per the question we have been given time $(n) = 2$ years, Rate(R) $ = 5\% $ and the compound interest is given i.e. $1100$. We have to find simple interests. So first we will calculate the principal.
We know that Compound interest$ = $Amount$ - $Principal. The formula of Amount is $P{\left( {1 + \dfrac{R}{{100}}} \right)^n}$
By substituting the values we get, $1100 = P{\left( {1 + \dfrac{5}{{100}}} \right)^2} - P$. Now we will add the fraction and solve this: $1100 = P{\left( {\dfrac{{105}}{{100}}} \right)^2} - P \Rightarrow
1100 = P{(1.05)^2} - P$. Now we will write the product: $1100 = 1.1025P - P \Rightarrow 1100 = .05P$, By isolating the term P and moving the numbers in right side we have, $P =
\dfrac{{1100}}{{0.05}} = \dfrac{{1100 \times 100}}{5}$, It gives us $P = 22000$.
Now we will calculate Simple interest $ = \dfrac{{P \times R \times T}}{{100}}$. By substituting all the values $\dfrac{{22000 \times 5 \times 2}}{{100}} = 2200$.
Hence the correct option is (C) Rs. $2200$
Note: Before solving this kind of question we should know what is simple interest and compound interest. WE should be aware of all their formulas and be careful what the question is asking i.e. is it simple interest or compound interest. WE should know that the major difference between the simple interest and compound interest is that simple interest is based on the principal of the deposit or a loan while compound interest is based on the principal and interest that accumulates in a period of time.
Complete step by step solution:
As per the question we have been given time $(n) = 2$ years, Rate(R) $ = 5\% $ and the compound interest is given i.e. $1100$. We have to find simple interests. So first we will calculate the principal.
We know that Compound interest$ = $Amount$ - $Principal. The formula of Amount is $P{\left( {1 + \dfrac{R}{{100}}} \right)^n}$
By substituting the values we get, $1100 = P{\left( {1 + \dfrac{5}{{100}}} \right)^2} - P$. Now we will add the fraction and solve this: $1100 = P{\left( {\dfrac{{105}}{{100}}} \right)^2} - P \Rightarrow
1100 = P{(1.05)^2} - P$. Now we will write the product: $1100 = 1.1025P - P \Rightarrow 1100 = .05P$, By isolating the term P and moving the numbers in right side we have, $P =
\dfrac{{1100}}{{0.05}} = \dfrac{{1100 \times 100}}{5}$, It gives us $P = 22000$.
Now we will calculate Simple interest $ = \dfrac{{P \times R \times T}}{{100}}$. By substituting all the values $\dfrac{{22000 \times 5 \times 2}}{{100}} = 2200$.
Hence the correct option is (C) Rs. $2200$
Note: Before solving this kind of question we should know what is simple interest and compound interest. WE should be aware of all their formulas and be careful what the question is asking i.e. is it simple interest or compound interest. WE should know that the major difference between the simple interest and compound interest is that simple interest is based on the principal of the deposit or a loan while compound interest is based on the principal and interest that accumulates in a period of time.
Recently Updated Pages
Mark and label the given geoinformation on the outline class 11 social science CBSE
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
When people say No pun intended what does that mea class 8 english CBSE
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
Name the states which share their boundary with Indias class 9 social science CBSE
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
Give an account of the Northern Plains of India class 9 social science CBSE
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
Change the following sentences into negative and interrogative class 10 english CBSE
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
Advantages and disadvantages of science
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
Trending doubts
Bimbisara was the founder of dynasty A Nanda B Haryanka class 6 social science CBSE
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
Which are the Top 10 Largest Countries of the World?
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
Difference between Prokaryotic cell and Eukaryotic class 11 biology CBSE
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
Differentiate between homogeneous and heterogeneous class 12 chemistry CBSE
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
10 examples of evaporation in daily life with explanations
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
Fill the blanks with the suitable prepositions 1 The class 9 english CBSE
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
Give 10 examples for herbs , shrubs , climbers , creepers
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
How do you graph the function fx 4x class 9 maths CBSE
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
Difference Between Plant Cell and Animal Cell
![arrow-right](/cdn/images/seo-templates/arrow-right.png)