If simple interest earned on a certain sum for the 3rd year is Rs. 1300 and compound interest earned in 2 years is Rs. 2652/-, then find the rate of interest p.a.
Answer & explanation
Correct answer: option 3
SI for 2 years = 1300 + 1300 = 2600
CI for 2 years = 2652
Diff in CI and SI = 2652 - 2600 = 52
This diff. is due to the interest on Rs. 1300
Hence rate of interest = \(\frac{52}{1300}\) × 100 = 4%