If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the compound interest on the same sum at the rate and for the same time?
Answer: A
Sum = (50 * 100) / (2 * 5) = Rs. 500
Amount = [500 * (1 + 5/100)⊃2;] = Rs. 551.25
C.I. = (551.25 - 500) = Rs. 51.25.