Multiple choice

A man received Rs. 600 as interest when he invested Rs. P at 12% p.a. at SI for 5 years. If he invested Rs. P at R% p.a. at CI compounding annually for 1 year and the interest received by him was Rs. 200, find the rate of interest.

  1. 25%

  2. 20%

  3. 18%

  4. 15%

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

SI: 600 = P * 0.12 * 5 => 600 = 0.6P => P = 1000. CI: 200 = 1000 * (1 + R/100)^1 - 1000? No, interest is 200. 200 = 1000 * (R/100). R = 20%.

AI explanation

From the simple interest data, 600 = (P * 12 * 5) / 100, which means P = 1000. For the compound interest compounded annually for 1 year, the interest is the same as simple interest, so 200 = (1000 * R * 1) / 100. Solving this yields a rate of 20%.

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