Rs. 6000 is lent at the annual rate of 10 percent for 2 years. Which of the following is statement(s) is/are correct?

I. Simple interest to be received on this sum is Rs. 1200

II. Compound Interest (compounding annually) to be received on this sum is Rs. 1260

Both statement I and II are correct

I.

Simple at the rate of 10% per annum for 2 years = 10% + 10% = 20%

SI = \(\frac{P×R×T}{100}\)

= \(\frac{6000×10×2}{100}\)

= 1200

Statement I is correct.

II.

Compound interest at rate of 10% p.a. for 2 years = 10 + 10 + \(\frac{10×10}{100}\)

= 20 + 1

= 21%

CI = 6000 × 21% = 1260

Statement II is correct.

Ans :- Both statement I and II are correct