Question

If the compound interest on a certain sum for 2 years at 7% per annum is 207. the simple interest at same rate of interest for 2 years would?

Answer 1

2.
The Simple Interest on a certain sum for 2 years is Rs.120 and the compound interest is Rs. 129. Find the rate of interest (a ) 14% (b) 15 % (c ) 12 % (d ) 12 % (e ) Cannot be determined Solution ; (b). Interest for first year in Simple Interest and Compound Interest are same So we need to blind first year interest. Simple interest for every year will be same = Simple Interest for 2 years = 120 1 year = 120/2 = 60 So first year interest of Compound Interest = 60 The difference between simple interest and compound interest for 2nd y
ear is ‘a’. So find a is what %
of 60 = 9/60 X 100 = 15%