A man gets a simple interest of Rs.1000 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 most appropriate option
A) Rs.500 B) Rs.250 C) Rs.5012.50 D) Rs.512.5 E) None of these.
Let the principal be Rs.P   S.I at 5% p.a in 8 years on Rs.P = Rs.1000   (P)(8)(5)/100 = 1000   P = 2500   C.I on Rs.2P i.e., Rs.5000 at 5% p.a in two years   =5000{ [1 + 5/100]2 - 1} = 5000{ 212 - 202 /202}   = Rs.512.5   ANSWER:Rs.512.5
<result>D</result>
A man gets a simple interest of Rs.1000 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.