If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the compound interest on the same sum at the rate and for the same time?

A. Rs. 51.25
B. Rs. 52
C. Rs. 54.25
D. Rs. 60

Explanation:

Sum = (50 * 100) / (2 * 5) = Rs. 500

Amount = [500 * (1 + 5/100)2] = Rs. 551.25
C.I. = (551.25 – 500) = Rs. 51.25.