Multiple choice

Find the rate of interest per annum, if in 2 years, simple interest is Rs. 600 and compound interest is Rs. 630.

  1. 11%

  2. 15%

  3. 11.5%

  4. 10%

  5. 12%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Simple interest for 2 years = 600, so SI for 1 year = 300. Compound interest for 2 years = 630. The difference (30) is the interest on the first year's interest (300). Rate = (30 / 300) * 100 = 10%.

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