Question
Simple interest on a certain sum at a certain rate for 2 years in Rs.160 and compound interest on the same sum at the same rate and for the same period is Rs.170. The rate of interest per annum is:
Solution
Answer (b): 12.5%
Explanation:
Si for 1st year=ci for first year= 160/2 =80
Ci for 2nd year = 170-80 =90
Ci of 2nd year - si of 1st year=10
Ci for 2nd year - si for 1st year = si on the interest for first year
So, si on the Interest of 1st year= 10
10 = 80*R*1/100
R=12.5%.
Answer (b): 12.5%
Explanation:
Si for 1st year=ci for first year= 160/2 =80
Ci for 2nd year = 170-80 =90
Ci of 2nd year - si of 1st year=10
Ci for 2nd year - si for 1st year = si on the interest for first year
So, si on the Interest of 1st year= 10
10 = 80*R*1/100
R=12.5%.