The difference between the compound interest and simple interest for the amount Rs. 5,000 in 2 years is Rs. 32. The rate of interest is

• 5000 x (1 +R/100)2 - 5000] - (5000 x 2 x R)/100 =72
  ⇒ 5000[(1 +R/100)2 - 1 - R/50] = 72
  ∴ 1 + R2/10000 + 2R/100 - 1 - R/5 = 72/5000
  ⇒ R2 = (72/5000 x 10000) = 144
  ∴ R = 12%
• 6 years agoHelpfull: Yes(0) No(0)