The difference between the compound interest and simple interest on ₹18,000 for 2 years is ₹405. What is the rate of interest per annum?
Show answer & explanation
Correct answer: C
Explanation
Compound interest − Simple interest = P × (R/100)²
405 = 18000 × (R/100)²
(R/100)² = 405 ÷ 18000
= 9 ÷ 400
R/100 = 3/20
R = 15%