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%
D. 10%
Answer: Option C
Solution(By Examveda Team)
$$\eqalign{ & {\text{SI for 1 year}} \cr & {\text{ = Rs 260}} \cr & {\text{SI for 2 year}} \cr & {\text{ = 260}} \times {\text{2}} \cr & {\text{ = Rs}}{\text{. 520 }} \cr & {\text{Difference in (CI}} - {\text{SI)}} \cr & \left( {540.80 - 520} \right){\text{ = Rs 20}}{\text{.8}} \cr & {\text{Required rate % }} \cr & {\text{ = }}\frac{{20.8}}{{260}} \times {\text{100}} \cr & {\text{ = 8% }} \cr} $$Related Questions on Compound Interest
A. Rs. 120
B. Rs. 121
C. Rs. 122
D. Rs. 123
E. None of these
A. 625
B. 630
C. 640
D. 650
E. None of these
A. Rs. 2160
B. Rs. 3120
C. Rs. 3972
D. Rs. 6240
E. None of these
A. Rs. 2.04
B. Rs. 3.06
C. Rs. 4.80
D. Rs. 8.30
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