Q45
At a certain rate per annum, the simple interest on a sum of money for one year is Rs. 260 and the compound interest on the same sum for two years is Rs. 540.80. The rate of interest per annum is = ?
A.
4%
B.
6%
C.
8%
AnswerD.
10%
Answer: Option C
Solution
Answer: Option C
Solution:
\begin{aligned}
& {\text{SI for 1 year}} \\
& {\text{ = Rs 260}} \\
& {\text{SI for 2 year}} \\
& {\text{ = 260}} \times {\text{2}} \\
& {\text{ = Rs}}{\text{. 520 }} \\
& {\text{Difference in (CI}} - {\text{SI)}} \\
& \left( {540.80 - 520} \right){\text{ = Rs 20}}{\text{.8}} \\
& {\text{Required rate % }} \\
& {\text{ = }}\frac{{20.8}}{{260}} \times {\text{100}} \\
& {\text{ = 8% }} \\\end{aligned}