The difference between the compound interest (compounded annually) and the simple interest on a sum of 1000 at a certain rate of interest for 2 years is 10. The rate of interest per annum is :
Options:
A . 12%
B . 5%
C . 10%
D . 6%
Answer: Option C Answer: (c)When difference between the compound interest and simple interest on a certain sum of money for 2 years at r% rate is x, thenx = Sum$(r/100)^2$10 = 1000$(r/100)^2$$(r/100)^2 = 10/1000$$r/100 = √{1/100} = 1/10$r = $100/10$ = 10%Using Rule 6,Here, C.I. - S.I. = Rs.10, R = ?, T= 2 years, P = Rs.1000C.I. - S.I. = P$(R/100)^2$10 = 1000$(R/100)^2$10 = 1000$ × R/100 × R/100$$R^2$ = 100R = $√{100}$ = 10%
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