Find Out the Rate of Interest

The simple interest on a certain sum for 2 year is Rs 120 and compound interest is Rs. 129. Find the rate of interest

  1. 14%
  2. 15%
  3. 12%
  4. 12.5%
Desire Adnan Default Asked on 5th August 2015 in Maths.
Add Comment
1 Answer(s)

Answer: (2) 15 %

Explanation:-
Simple Interest & compound Interest in first year are  equal
Simple Interest for every year will be same.
Simple Interest of two years = Rs.120
Then, the simple interest of one year = 120/2
= Rs.60
Therefore, the compound interest of first year = Rs.60

The difference between simple interest and compound interest for second year = 129 – 120
= Rs.9
Therefore, Rs.9 is percent of 60 = 9 x 100/60
= 90/6
= 15 %

Then, the rate of interest is 15 %.
Hence, the answer is (2) 15 %.

Anurag Mishra Professor Answered on 5th August 2015.
Add Comment

Your Answer

By posting your answer, you agree to the privacy policy and terms of service.