2015 · Q13
The difference between compound interest and simple interest at the same rate of interest R percent per annum on an amount of ₹ 15,000 for 2 years is ₹ 96. What is the value of R?
Elementary MathematicsSimple and Compound Interest
- A8
- B10
- C12
- DCannot be determined due to insufficient data
Explanation
This uses the two-year CI–SI difference formula. For 2 years, CI - SI = P(R/100)², because the only extra compounding is interest-on-first-year-interest. So 15000 × R²/10000 = 96, i.e. 1.5R² = 96, giving R² = 64 and R = 8%. Checking: SI = ₹2400, CI = 15000(1.08² - 1) = ₹2496, difference ₹96, as required. Option (d) "cannot be determined" is the trap; two years of data fully determine R. Hence option (a).