On a sum of money, the simple interest for 2 years is ₹ 660, while the compound interest is ₹ 696.30, the… · ABC26GN4183
Subject: General Aptitude · Chapter: Compound Interest
On a sum of money, the simple interest for 2 years is ₹ 660 , while the compound interest is ₹ 696.30, the rate of interest being the same in both the cases. The rate of interest is
(a)10\%
(b)10.5\%
(c)12\%
(d)None of these
Answer
Answer (as printed): D
Explanation
Difference in C.I. and S.I. for 2 years $$=₹(696.30-660)=₹ 36.30 .$$ S.I. for one year $=₹ 330$. ∴ S.I. on ₹ 330 for 1 year $=₹ 36.30$. $$\text { ∴ } \text { Rate }=\left(\frac{100 \times 36.30}{330 \times 1}\right) \%=11 \% .$$
Explanation as extracted from the printed page; notation may be imperfect.