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.