Question

The simple interest on a certain sum computes to Rs.400 in 2 years and the C I on the same sum at the same rate and for the same time computes to Rs. 410. Find the rate of interest​

Answer 1

Answer:

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%