The compound interest on a certain some of money for 2 years at 10% per annum is Rs 420. The simple interest on the same sum at the same rate and for the same time will be ?

Explanation:-

$$\eqalign{ & {\text{Rate = 10}}\% \cr & {\text{Time = 2 years}} \cr & {\text{Effective rate of CI for 2 years}} \cr & {\text{ = 10 + 10 + }}\frac{{10 \times 10}}{{100}} \cr & = 21\% \cr & {\text{Effective rate of SI for 2 years}} \cr & {\text{ = 2}} \times {\text{10 = 20}}\% \cr & {\text{Required SI}} \cr & {\text{ = }}\frac{{420}}{{21}} \times {\text{20 = Rs 400}} \cr}$$