The difference between the compound and simple interest on a sum of ₹12,000 for 2 years is ₹216. Find the rate of interest per annum.
Show answer & explanation
Correct answer: D
Explanation
For 2 years,
Compound Interest − Simple Interest = P × r²/10000
216 = 12000 × r²/10000
r² = (216 × 10000)/12000 = 180
r = √180 ≈ 13.42%