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    Question

    Simple interest and compound interest (compounded

    annually) earned on a sum at the end of 2 years at a certain rate of interest p.a. are Rs. 1500 and Rs. 1560 respectively. Find the rate of interest.
    A 20% Correct Answer Incorrect Answer
    B 21% Correct Answer Incorrect Answer
    C 8% Correct Answer Incorrect Answer
    D 10% Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Simple interest for 1 year = 1500/2 = Rs. 750 Difference between compound Interest and Simple Interest for 2 years = 1560 – 1500 = Rs. 60 Desired rate = 60/750 × 100 = 8%

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