Question

State whether the given statement is true or false.
The difference between compound interest and simple interest on an amount of Rs. 15,000 for 2 years is Rs. 96. The rate of interest per annum is 8%.

• A.
• B.

Answer 1

The correct option is A

$[15000\times (1+\frac{R}{100}{)}^2-15000]-[\frac{15000\times R\times 2}{100}]=96$
Substitute R = 8 in the above equation.
Then,
$LHS=[15000\times (1+\frac{8}{100}{)}^2-15000]-[\frac{15000\times 8\times 2}{100}]=17496-15000-2400=17496-17400=96$
$\Rightarrow R=8\%$