The difference between the compound interest (compounded annually) and the simple interest on a sum of ₹5000 at a certain rate of interest for 2 years is ₹112.5. The rate of interest per annum is:

25% 15% 16% 17.5%

15%

Difference b/w CI and SI for 2 years = Principal × R% × R% ⇒ 112.5 = 5000 × \(\frac{R^2}{10000}\) ⇒ R2 = 225 ⇒ R = 15%