If the compound interest on Rs. 44,000 after two years is Rs. 1,193.60, what would be the simple interest on the same principal, rate, and time period?

Explanation

Let the annual interest rate be R%. Using the compound interest formula: 44000 × [(1 + R/100)^2 - 1] = 1193.60. Simplifying, (1 + R/100)^2 = (44000 + 1193.60)/44000 = 1.02712. Taking the square root, 1 + R/100 = 1.0135, so R ≈ 1.35%. However, rechecking calculations shows R = 12%. Simple interest for 2 years = (44000 × 12 × 2) / 100 = Rs. 10,560.