A sum of ₹7500 amounts to ₹9075 at 10% p.a, interest being compounded yearly in a certain time. The simple interest (in ₹) on the same sum for the same time and the same rate is:

1500

7500 becomes 9075 at 10% per annum at Compound interest

A=P(1+\(\frac{R}{100}\))^T

where A = Amount , P = Principal, R = Rate and T = Time

So,

9075=7500(1+\(\frac{10}{100}\))^T

\(\frac{9075}{7500}\)=(\(\frac{11}{10}\))^t

\(\frac{121}{100}\)=(\(\frac{11}{10}\))^t

(\(\frac{11}{10}\))² =(\(\frac{11}{10}\))^t

∴ T = 2 years

Now

P = 7500

R = 10%

T = 2 years

Simple Interest = \(\frac{P×R×T}{100}\)

S.I. = \(\frac{7500×10×2}{100}\)

S.I. = Rs 1500