Question

The difference between compound interest and simple interest on an amount of Rs. $15,000$ for $2$ years is Rs. $96$. What is the rate of interest per annum?

• A. $8$
• B. $10$
• C. $12$
• D. Cannot be determined
• E. None of these

Answer 1

The correct option is A $8$

$[15000\times {(1+\frac{R}{100})}^2-15000]-\left(\frac{15000\times R\times 2}{100}\right)=96$
$\Rightarrow 15000[{(1+\frac{R}{100})}^2-1-\frac{2R}{100}]=96$
$\Rightarrow 15000\left[\frac{(100+R{)}^2-10000-(200\times R)}{10000}\right]=96$
$\Rightarrow R^2=\left(\frac{96\times 2}{3}\right)=64$
$\Rightarrow R=8$.
$\therefore Rate=8$%.