Suresh lends a certain sum of money to his friends at 10% per annum on compound interest for 2 years. After 2 years, He gained as an interest is Rs.504. Then find the simple interest on the same sum for 4 years at 6% per annum.

- 576
- 476
- 500
- 423

Option 1 : 576

**Given**

Rate of interest in 1st condition = 10% per annum

compound interest = Rs 504

**Formula Used **

Simple Interest = (Principal × Time × Rate)/100

**Calculation **

R = 10% = 1/10

Time |
Principal |
Amount |

1st year | 10x | 11x |

2nd year | 10x | 11x |

Total | 100x | 121x |

⇒ C.I. = 504

⇒ 121x – 100x = Rs. 504

⇒ x = 24

Principal = 100x = 24 ×100 = Rs 2400

⇒ S.I. = (2400 × 4 × 6)/100

⇒ S.I. = Rs 576

**∴ The simple Interest is Rs 576 **

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