The difference between compound interest and simple interest on an amount of Rs. 15,000 for 2 years is Rs. 96. What is the rate of interest per annum?
Q1. The difference between compound interest and simple interest on an amount of Rs. 15,000 for 2 years is Rs. 96. What is the rate of interest per annum?
Answer: 8%
Explanation: For 2 years, CI − SI = P × (r/100)²; substituting gives 15,000 × r²/10,000 = 96, so r² = 64 and r = 8%.