Question

If the compound interest on a certain sum for two consecutive years is rs.220 and rs.242, then the rate of interest per annum is?

Answer 1

10%
242-220=22*100/(220)=10%

Answer 2

Answer:

The rate of interest per year = 10%

Step-by-step explanation:

Formula:

Simple Interest (SI) = P N R / 100

P is the Principal loan amount = Rs.1400

N is the number of years of deposit

R is the rate of interest

Given:

Compound interest on a certain sum of amount for two consecutive years is Rs.220 and Rs.242

Solution:

Difference of compound interest of first and second year = 242-220 = Rs.22

This interest of Rs.22 is the simple interest on amount of Rs.220

P = Rs.220

SI = Rs.22

N = 1 year

So,

22 = (220 × 1 × R) / 100

R = 2200 / 220

R = 10%