1.  The difference between compound interest and simple interest on an amount of ₹ 15,000 for 2 years is ₹ 96. What is the rate of interest per annum.
A. 8
B. 10
C. 12
D. Cannot be determined
E. None of these

Answer: Option A

Explanation:

15000 x 1 + R 2 - 15000 - 15000 x R x 2
100 100

= 96

⇒ 15000 1 + R 2 - 1 - 2R = 96
100 100

⇒ 15000 (100 + R)2 - 10000 - (200 x R) = 96
10000

⇒ R2 = 96 x 2 = 64
3

⇒ R = 8.

∴ Rate = 8%.