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The compound interest on a certain sum for two years is Rs. 618 whereas the simple interest on the same sum at the same rate for two years is Rs. 600. The ratio of interest per annum is 1. 3%2. 18%3. 6%4. 9% The compound interest on a certain sum for two years is Rs. 618 whereas the simple interest on the same sum at the same rate for two years is Rs. 600. The ratio of interest per annum is 1. 3%2. 18%3. 6%4. 9%
compound interest is A = P (1 + r/n) ntHence given,618 = P (1 + r) 2and600 = P*r*2/100dividing both we get,618/600 = (10(1+r)/r)^2we get r= 3% approx.
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