Question

Q2 The compound interest on a certain sum of money for 2 years is Rs. 208 and the simple interest for the same time at the same rate is Rs. 200. Find the rate %.

Answer 1

Answer:

Answer

Correct option is

C

5%

⇒ It is given that simple interest in 2 years = Rs.400

⇒ Simple interest for 1 year = Rs.200

⇒ Hence, Compound interest for 1 year = Rs.200

⇒ Given compound interest for 2 years = Rs. 410

∴ Compound interest for 2 years = Compound interest 1st year + Compound interest 2nd year

⇒ Compound interest for 2nd year = Rs.410 - Rs.200 = Rs.210

⇒ That is interest on Rs.200 for 1 year = Rs.210-Rs.200=Rs.10

⇒ We know I=

100

P×T×R

⇒ 10=

100

200×1×R

⇒ 2R=10

∴ R=5%