Simple Interest - Quantitative Aptitude (MCQ) questions for Q. 20726

Q.  A certain sum earns simple interest of Rs. 800 in 2 years at a certain rate of interest. If the same sum earns compound interest of Rs. 845 in the same period of 2 years, What must be the rate of interest?
- Published on 07 Jul 17

a. 5% p.a.
b. 7.5% p.a.
c. 10% p.a.
d. 12.5% p.a.

ANSWER: 10% p.a.
 
Given: 800 = (P * R * 2) / 100
S.I. For 1 year = Rs. 400
Thus, (840 – 800) = S.I. on Rs. 400 for 1 year
40 = (400 * R * 1) / 100
R = 10% p.a.

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