Question

A sum of money lent at compound interest yields Rs 100 at the end of 1st year and Rs 105 at the end of 2nd year. The rate % p.a. is?​

Answer 1

Given, Amount = Rs. 220, Principle = Rs. 200, Time =1 year

1 year simple interest and compound interest are equal.

So Interest =220−200= Rs. 20

S.I. =100PRT

R=P×TS.I. ×100

R=200×120×100

R=10%