Question

    A certain sum of money invested at R% p.a. fetches a

    compound interest (compounded annually) of 1620 and simple interest of Rs.1500 at the end of 2 years. Find the value of ‘R’.
    A 10% Correct Answer Incorrect Answer
    B 17.4% Correct Answer Incorrect Answer
    C 8% Correct Answer Incorrect Answer
    D 16% Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Difference between compound interest and simple interest for 2 years = 1620 – 1500 = Rs.120 Simple interest for 1 year = 1500/2 = Rs.750 So, R = (120/750) × 100 = 16%

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