Question

The compound interest on a certain sum for 2 years is rs 104 and the simple interest

Answer 1

Given that SI in 2 years = Rs 400

⇒ SI for 1 year = Rs 400/2 = Rs 200

Hence CI for 1 year = Rs 200

Given compound interest for 2 years = Rs 410

Therefore CI for 2 years = CI for 1st year + CI for 2nd year

⇒ CI for 2nd year = Rs 410 – Rs 200 = Rs 210

That is interest on Rs 200 for 1 year = Rs 210 – Rs 200 = Rs 10

⇒ 2R = 10

∴ R = 5%