Question

The difference between the simple interest and compound interest for an amount after 2 years is Rs. 64. If the simple interest for 2 years is Rs. 1600, what is the rate of interest?​

Answer 1

• S.I. for the 1st year Rs.800
• Interest for Rs.800 = Rs.64
• Rate interest = 64/800×100=8%

Answer 2

S.I for 1st year=RS.800

Interest for Rs.800= Rs.64

Rate of interest=64/800×100=8

so 8% is the correct answer