At a certain rate of interest, a sum of 3600 would fetches an interest

1.	At a certain rate of interest, a sum of 3600 would fetches an interest 43.56 less when put under simple interest for 2 years than when put under compound interest for 2 years. Find the rate of interest.1. 10%2. 14%3. 11%4. 12%
Answer» Correct Answer - Option 3 : 11% Given: At a certain rate of interest, a sum of 3600 would fetches an interest 43.56 less when put under simple interest for 2 years than when put under compound interest for 2 years Formula: S.I = (principal × rate × time)/100 Interest under compound interest = P[1 + (R/100)]^T – P Calculation: According to the question, ⇒ [3600 × {1 + (R/100)}² – 3600] – [(3600 × R × 2)/100] = 43.56 ⇒ 3600 (1 + (R/100)}² – 72R = 43.56 + 3600 ⇒ R = 11% Hence, rate is 11%

At a certain rate of interest, a sum of 3600 would fetches an interest 43.56 less when put under simple interest for 2 years than when put under compound interest for 2 years. Find the rate of interest.1. 10%2. 14%3. 11%4. 12%

Answer» Correct Answer - Option 3 : 11%

Given:

At a certain rate of interest, a sum of 3600 would fetches an interest 43.56 less when put under simple interest for 2 years than when put under compound interest for 2 years

Formula:

S.I = (principal × rate × time)/100

Interest under compound interest = P[1 + (R/100)]^T – P

Calculation:

According to the question,

⇒ [3600 × {1 + (R/100)}² – 3600] – [(3600 × R × 2)/100] = 43.56

⇒ 3600 (1 + (R/100)}² – 72R = 43.56 + 3600

⇒ R = 11%

Hence, rate is 11%

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