Question

The compound interest on a certain sum for two years is Rs.618 whereas the simple interest on the same sum at the same rate for two years is Rs. 600. The rate of interest per annum is:

• A. 18%
• B. 9%
• C. 6%
• D. 3%

Answer 1

The correct option is C 6%

First year SI $=Rs\frac{600}{2}=Rs300$
$CI-SI=618-600=Rs18$
Interest on Rs 300 for 1 year = Rs 18
Interest on Rs 100 for 1 year $Rs\frac{18\times 100}{30}$
= Rs.6
$\therefore rate=6$%