The difference between compound interest and simple interest at the same rate on Rs 5000 for 2 years is Rs 72. The rate of interest per annum is:___________?
Q1. The difference between compound interest and simple interest at the same rate on Rs 5000 for 2 years is Rs 72. The rate of interest per annum is:___________?
Answer: 12%
Explanation: The difference between CI and SI for 2 years = P×r²/100² = 5000r²/10000 = r²/2 = 72, so r² = 144 and r = 12%.