Home » Aptitude » Compound Interest

The difference between the compound interest and the simple interest accrued on an amount of Rs. 18,000 in 2 years was Rs. 405. What was the rate of interest p.c.p.a. ?

Correct Answer: 15%

Explanation:

Let the rate be R% p.a. Then,


 


1800 1 + R 100 2 - 1800 - 1800 * R * 2 100 = 405


1800 100 + R 2 10000 - 1 - 2 R 100 = 405


  1800 100 + R 2 - 10000 - 200 R 10000 = 405



9 5 * R 2 = 405   R 2 = 405 * 5 9 = 225 R = 15  
Rate = 15%.


← Previous Question Next Question→

Discussion & Comments

No comments yet. Be the first to comment!
Join Discussion