Question

The amount invested by Gautam in scheme S is equal to the amount invested by him in scheme N. The rate of interest (p.c.p.a) of scheme S and N are the same. The only difference is that scheme S offers compound interest (compounded annually) while the scheme N offers simple interest. If the difference between the interest earned by Gautam from both the schemes after 2 yr is Rs. 349.92, what is the rate of interest (in $\%$)?

• A. 9
• B. 5
• C. 13
• D. 11
• E. 7

Answer 1

The correct option is A 9

Amount invested by Gautam in scheme S is equal to the amount invested by him in scheme N
Then, $S=\frac{72\times 60}{100}=43200$

Now, difference $=\frac{P{R}^2}{(100{)}^2}$

$R^2=\frac{349.92\times 100\times 100}{43200}$

$R^2=81$

$R=9\%$