Practicing Success
If simple interest earned on a certain sum for the 4 years is Rs. 19,200 and compound interest earned in 2 years is Rs. 10,200/-, then find the rate of interest p.a. |
6.25% 8.33% 12.5% 15% |
12.5% |
S.I. is constant for each year ⇒ S.I. in 4 year = Rs.19200/- ⇒ S.I. in 1 year =\(\frac{19200}{4}\) = Rs. 4800/- ⇒ S.I. in 2 year =\(\frac{19200}{2}\) = 9600 ⇒ C.I. in 2 years = Rs.10200/- Difference b/w C.I. and S.I. = 10200 - 9600 = 600 ⇒ Rate of Interest = \(\frac{(600) × 100}{4800}\) ⇒ R = 12.5% |