Question : Rachit invests Rs. 12,000 for a 2-year period at a certain rate of simple interest per annum. Prasad invests Rs. 12,000 for a 2-year period at the same rate of interest per annum as Rachit, but in Prasad's case, the interest is compounded annually. Find the rate of interest per annum if Prasad receives Rs. 172.80 more as interest than Rachit at the end of the 2-year period.
Option 1: 10%
Option 2: 8%
Option 3: 12%
Option 4: 5%
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Correct Answer: 12%
Solution : Given, Rachit invests Rs. 12,000 for 2 years at a certain rate of simple interest Prasad invests Rs. 12,000 for 2 years at the same interest rate per annum as Rachit, but in Prasad's case, the interest is compounded annually. Difference in interest is Rs. 172.8 Difference between Compound Interest and Simple Interest for 2 years = $P(\frac{R}{100})^2$ where $P$ is the principal, $R$ is the rate of interest Let the rate of interest be R $172.8 = 12000 × (\frac{R}{100})^2$ ⇒ $172.8 = 12000 × \frac{R^2}{10000}$ ⇒ $172.8 = 1.2 × R^2$ ⇒ $144 = R^2$ ⇒ $R = 12$ Hence, the correct answer is 12%.
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Question : The difference between the simple interest and the compound interest at the same rate for INR 32,000 for 2 years is 80. What is the rate of interest, if in the case of compound interest, interest is compounded annually?
Option 1: 8% per annum
Option 2: 2% per annum
Option 3: 5% per annum
Option 4: 12% per annum
Question : On a certain sum of money, the simple interest for 2 years is INR 150 at the rate of 10% per annum. What is the difference between compound interest and simple interest for 2 years if, in the case of compound interest, interest is compounded annually at the rate of 10% per annum?
Option 1: INR 5
Option 2: INR 10
Option 3: INR 7.5
Option 4: INR 12.5
Question : The difference between the compound interest and the simple interest on an amount of INR 1,500 for 2 years, at a given rate of interest per annum, is INR 60. What is the rate of interest per annum, if in the case of compound interest, the interest is compounded annually?
Option 1: 20%
Option 2: 15%
Option 3: 25%
Option 4: 12.5%
Question : Sashi took a loan of Rs. 700 on simple interest for as many years as the rate of interest per annum. If he paid Rs. 343 as interest at the end of the loan period, what was the rate of interest?
Option 1: 6%
Option 2: 4%
Option 3: 10%
Option 4: 7%
Question : At what rate of compound interest (compounding annually) per annum will a sum of Rs. 250000 becomes Rs. 275625 in 2 years?
Option 2: 3% per annum
Option 3: 10% per annum
Option 4: 5% per annum
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