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If the C.I. on a sum for 2 years at 12 1/2 % per annum is Rs. 510, the S.I. on the same sum at the same rate for the same period of time is?

  • A.Rs. 400
  • B.Rs. 450
  • C.Rs. 460
  • D.Rs. 480

Answer: D

Let the sum be Rs. P. Then, 

[P(1 + 25/(2 * 100))⊃2; - P] = 510 

P[(9/8)⊃2; - 1] = 510. 

Sum = Rs. 1920

So, S.I. = (1920 * 25 * 2) / (2 * 100) = Rs. 480

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