The difference between simple interest and compound interest at the same rate for Rs. 5000 for 2 years is Rs. 72.The rate of interest is?

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Accepted Answer

∵ [5000 x (1 +R/100)2 - 5000] - (5000 x 2 x R)/100 =72 ⇒ 5000[(1 +R/100)2 - 1 - R/50] = 72 ∴ 1 + R2/10000 + 2R/100 - 1 - R/5 = 72/5000 ⇒ R2 = (72/5000 x 10000) = 144 ∴ R = 12% …

The difference between simple interest and compound interest at the same rate for Rs. 5000 for 2 years is Rs. 72.The rate of interest is?

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