Q. A man gets a simple interest on Rs. 1000 on a certain principal at the rate of 5 p.c.p.a. in 4 years. What compound interest will the man get on twice the principal in 2 years at the same rate ?

• A. Rs. 1000
• B. Rs. 1025
• C. Rs. 10125
• D. Rs. 11025

Correct Answer: B