Question

The compound interest on a sum of money for 2 years
is 50 and the simple interest on the same sum, for the
same period and at the same rate is 48. Find the rate
​

Answer 1

Question :-

The compound interest on a sum of money for 2 years is 50 and the simple interest on the same sum, for the same period and at the same rate is 48. Find the rate.

Answer :-

→ Rate (r) = 8 %

To Find :-

→ Rate

Solution :-

Given that :

• Compound interest (C.I) for 2 year = 50
• Simple interest (S.I) for 2 years = 48

→ Simple interest and compound interest for first year is same ,

hence,

→ S.I for first year = $\sf \dfrac{50}{2} =Rs. \:25$

therefore ,

→ C.I for second year = 52 - 25 =Rs. 27

Hence , difference is 27 - 25 = Rs. 2

→ Rs. 2 on first year interest of Rs. 25

So, rate(r) will be -

$\to \sf 2= \frac{25 \times r \times 1}{100} \\ \\ \to \sf \: 200 = 25 \times r \: \\ \\ \to \sf r = \frac{200}{25} \\ \\ \to \boxed{\sf \: r = 8 \%}$

hence rate is 8% .