CI=P(1+r∕100)t−P SI=(P×r×t)∕100 Calculations: Let the principal amount be P . CI=P(1+4∕100)2−P 153=P(1.04)2−P 153=P(1.0816)−P 153=P(1.0816−1) 153=P(0.0816) P=153∕0.0816 P=1875 Now, we need to calculate the simple interest (SI) for the same principal, rate, and time. SI=(P×r×t)∕100 SI=(1875×4×2)∕100 SI=15000∕100 SI=150