Multiple choice

The simple interest on a certain sum compoudes to Rs. $256$ in $2$ years, whereas the compund interest on the same sum at the same rate and for the same time computes to Rs. $276.48$. Find the rate per cent and the sum.

  1. $18\%, Rs. 800$
  2. $16\%, Rs. 800$
  3. $14\%, Rs. 800$
  4. $12\%, Rs. 800$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For 2 years, the difference between compound and simple interest is P(r/100)^2. Using 276.48 - 256 = 20.48 and simple interest 2Pr/100 = 256 gives r = 16% and P = Rs 800.

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