Question
What is the rate of compound interest annually?
I. An amount doubles itself in 5 years on simple interest II. Difference between the compound interest and the simple interest earned on a certain amount in 2 years is Rs. 400 III. Simple interest earned per annum is Rs. 2000Solution
From (I) condition 1 = 1Ă— R Ă— 5/100 R=20% We can find the rate. from (ii) & (iii) given -CI-SI= 400 T=2y SI=2000 r= (400/2000)00 =100/5=20%
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