A sum of Rs. 7,500 is invested in a scheme offering r% compound interest for 2 years. Find the value of 'r' if the difference in the simple interest and compound interest for the same amount at the same rate of interest after 2 years is Rs. 108.

10%

8%

12%

9%

Answer: C
Solution
For 2 years, $CI-SI=P(r/100)^2$. Therefore, $108=7500(r/100)^2$. Hence, $r^2=144$, so $r=12\%$.

Question

A sum of Rs. 7,500 is invested in a scheme offering r% compound interest for 2 years. Find the value of 'r' if the difference in the simple interest and compound interest for the same amount at the same rate of interest after 2 years is Rs. 108.

Answer: C

Solution

For 2 years, $CI-SI=P(r/100)^2$. Therefore, $108=7500(r/100)^2$. Hence, $r^2=144$, so $r=12\%$.

Mansi Yadav · Accepted Answer

Answer: C — 12% Solution: For 2 years, $CI-SI=P(r/100)^2$. Therefore, $108=7500(r/100)^2$. Hence, $r^2=144$, so $r=12\%$.