Question
What is the rate percent per annum? Quantity I.
Sum of money becomes four times in five years at simple interest. Quantity II. The difference between compound interest and simple interest on a sum of Rs. 15,000 at the end of two years is Rs. 9,600. Study the following information carefully and answer the Questions given below:Solution
Quantity I. Rate % = (300 ×100)/(100 × 5) = 60% Quantity II. Difference = Pr²/100² 96 = (15000 × r²)/100² r² = (9600 × 100 ×100 )/15000 r² = 6400 r = 80% Hence Quantity I < Quantity II
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