Question
Download Solution PDFThe difference between the compound interest, compounding annually and the simple interest accrued on an amount of Rs. 18,000 in 2 years was Rs. 720. What was the rate of interest per annum?
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFGiven:
Principal (P) = Rs. 18,000
Time (T) = 2 years
Difference between Compound Interest and Simple Interest = Rs. 720
Concept:
The difference between CI and SI for two years = P × R²/1002 .
Solution:
⇒ R2 = Difference between CI and SI × 1002 / P
⇒ R2 = 720 × 10000/18000
⇒ R2 = 400
⇒ Rate of Interest (R) = √400 = 20%
Therefore, the rate of interest per annum is 20%.
Last updated on Jul 8, 2025
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