Question

What rate of interest when ₹1200 amounts to ₹1320 for 2 years

Answer 1

for two years interest is 120
for one year it is 60
60×100/1200=5%

Answer 2

the interest is amount minus principle that is 1320-1200 = 120
rs 120 is interest. rate of interest is I ×100/P×2
120×100/1200×2=5%