A man gets a simple interest of Rs.200 on a certain principal at the rate of 5% p.a in two years. Find the compound interest the man will get on twice the principal in two years at the same rate.
Choose the correct choice from the following choices:  A) Rs.102.5  B) Rs.250  C) Rs.5012.50  D) Rs.5062.50  E) None of these.
Let the principal be Rs.P   S.I at 5% p.a in 8 years on Rs.P = Rs.200   (P)(8)(5)/100 = 200   P = 500   C.I on Rs.2P i.e., Rs.1000 at 5% p.a in two years   =1000{ [1 + 5/100]2 - 1} = 1000{ 212 - 202 /202}   = Rs.102.5   Rs.102.5NSWER:Rs.102.5
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A man gets a simple interest of Rs.200 on a certain principal at the rate of 5% p.a in two years. Find the compound interest the man will get on twice the principal in two years at the same rate.