Question

The compound interest on a sum of money for 2 years is Rs 3328 and the simple interest for the same period is Rs 3200. Find the rate of interest.
1. 7%
2. 6%
3. 8%
4. 9%

Answer 1

Correct Answer - Option 3 : 8%

Given

Compound interest = Rs.3328

Simple interest = Rs.3200

Formula used

C.I - S.I = (R × S.I)/(2 × 100)

Where C.I, S.I and R is compound interest, simple interest and rate of interest respectively, 

Calculation

128 = (R × 3200)/(2 × 100)

⇒ (128 × 2 × 100)/3200 = R

⇒ 8% = R

∴ Rate is 8% per annum.