Multiple choice

The difference between simple interest and C.I. at the same rate for Rs. $5000$ for 2 years is Rs. $72$. The rate of interest is

  1. $10 \%$
  2. $12 \%$
  3. $6 \%$
  4. $8 \%$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Difference between CI and SI for 2 years = P * (R/100)^2. 72 = 5000 * (R/100)^2. 72 / 5000 = (R/100)^2. 0.0144 = (R/100)^2. R/100 = 0.12, so R = 12%.

AI explanation

For two years, the difference between compound interest and simple interest is given by the formula Difference = P * (R/100)^2. Substituting the known values gives 72 = 5000 * (R/100)^2, which simplifies to (R/100)^2 = 72 / 5000 = 0.0144. Taking the square root of both sides gives R/100 = 0.12, resulting in a rate of interest of 12%.

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