Question

The difference between compound interest and

simple interest on the sum of ` 7500 for 2 years

at the same rate of interest is ` 108. The rate of

interest per annum is

(1) 6% (2) 8%

(3) 12% (4) 15%

Answer 1

(3 ) 12%

difference in si an ci in percent= 108/7500×100 = 1.44
so Rate of interest is ✓1.4×100 = ✓144= 12