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      Question

      The difference between compound interest and simple

      interest at rate of 12% per annum for 2 years is Rs. 144. Find the simple interest obtained on same amount for a period of 2 years at rate of 10% per annum.
      A Rs. 2000 Correct Answer Incorrect Answer
      B Rs. 3000 Correct Answer Incorrect Answer
      C Rs. 2400 Correct Answer Incorrect Answer
      D Rs. 1500 Correct Answer Incorrect Answer
      E Rs. 1200 Correct Answer Incorrect Answer

      Solution

      Let, the amount be Rs. P. P[(1 + 12/100)2 – 1] – P × 12% × 2 = 144 P × 0.2544 – P × 0.24 = 144 P × 0.0144 = 144 P = 144 ÷ 0.0144 = Rs. 10000 Therefore, required interest = 10000 × 10% × 2 = Rs. 2000

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