Compound Interest Practice Test 3

Question : 12 of 40

Marks: +1, -0

The difference between simple interest and compound interest on a sum of Rs 5.4 Lakh is Rs 3,750. Find the rate of interest if compounded annually for a period of 2 years.

1.12%
0.21%
2.12%
0.12%
None of these

Validate

Solution:

Sum

={\Difference×100×100}/(\Rate)^2

5.4×1,00,000={ 3750×100×100}/(\Rate)^2

\Rate=√{144/{100×100}}

=12/100=0.12%

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