MCQ

The difference between compound interest and simple interest on an amount of ₹15000 for 2 years is ₹96. What is the rate of interest per annum?

#### Options

8%

10%

12%

Data inadequate

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#### Solution

**8%**

**Explanation :**

We know for two year,

Sum = difference `× (100/R)^2`

∴ `15000=96xx(100/R)^2`

⇒ `R^2=(96xx1000)/15000 ⇒ R= 8%`

Concept: Simple and Compound Interest

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