6 Views

Question : The difference between compound interest and simple interest on a sum of Rs. 16,000 for two years is Rs. 160. Find the per annum rate of interest.

Option 1: 12%

Option 2: 10%

Option 3: 11%

Option 4: 15%


Team Careers360 25th Jan, 2024
Answer (1)
Team Careers360 26th Jan, 2024

Correct Answer: 10%


Solution : Given: Principal = Rs. 16,000
Time = 2 years
We know, Difference between compound interest and simple interest = $P(\frac{r}{100})^2$, where $P$ = Principal, $r$ = Rate of interest
⇒ $160=16000(\frac{r}{100})^2$
⇒ $\frac{r^2}{10000}×100=1$
⇒ $r^2=100$
$\therefore r =10$%
Hence, the correct answer is 10%.

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books