Question

The Simple Interest on a sum of money for 2 years is Rs.50 and the Compound Interest on the same sum at the same rate for the same time is Rs.51.25. Find the rate of interest per annum

• A. 6.5%
• B. 5%
• C. 6%
• D. 5.5%

Answer 1

Answer:

B. 5%

simply in simple interest for 2 year =$2\times x=$ 50 is the interest

x=25

from option we take 5%

25 is the 5%

in the difference btw SI and Ci is 1.25 and this is 5% of 25

the answer is 5%