Multiple choice

The difference between simple interest and compound interest accrued on an amount of Rs 39000 in 2 years was Rs 659.1 . What is the rate of interest per annum ?

  1. 13 %

  2. 15 %

  3. 11 %

  4. 17 %

  5. None of these
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A Correct answer
Explanation

The difference between compound interest and simple interest for 2 years is P × r² ÷ 10000. Here: 659.1 = 39000 × r² ÷ 10000. So r² = 659.1 × 10000 ÷ 39000 = 169. So r = 13%. The rate of interest is 13% per annum.

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