Multiple choice

The simple and compound interests on a sum of money for 2 years are Rs. 8400 and Rs. 8652, respectively. The rate of interest per annum is

  1. 6%

  2. 7.5%

  3. 9%

  4. 4.5%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

SI for 2 years = 8400, so SI for 1 year = 4200. CI for 2 years = 8652. The difference between CI and SI for 2 years is the interest on the first year's interest: 8652 - 8400 = 252. Rate = (252 / 4200) * 100 = 6%.

Keep practicing — related questions