Compound Interest Practice Test 3

Question : 31 of 40

Marks: +1, -0

The simple interest on a sum of money for 2 years is Rs. 400 and the compound interest on the same sum for the same period and at the same rate is Rs. 410. Find the rate per cent per annum.

Validate

Solution:

Simple interest for 2 years = Rs. 400
Hence, simple interest or compound interest for 1 year = Rs. 200
Now,

200(1+r/100)=210

⇒r/100=21/20-1

∴r=1/20×100=5%

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