Simple interest on a certain sum at a certain rate for 2 years is Rs. 160 and compound interest on the same sum at the same rate and for the same period is Rs. 170. The rate of interest per annum is :
Simple interest remains same in every year.
=> Simple interest for 1 year = Rs. 80
Difference of C.I. and S.I. for two years = Rs.(170 - 160) = Rs. 10
=> Interest for 1 year on Rs. 80 = Rs. 10
=> $$\frac{80 \times r \times 1}{100} = 10$$
=> $$r = \frac{100}{8}$$ = 12.5%
Create a FREE account and get:
