# The ratio of the amount for two years under compound interest annually and for one year under simple interest is 6:5. When the rate of interest is same, then the value of rate of interest is ?

The ratio of the amount for two years under compound interest annually and for one year under simple interest is 6:5. When the rate of interest is same, then the value of rate of interest is ?

A. 20 %

B. 15 %

C. 18 %

D. 22 %

**Answer : **A. 20 %...

## Explanation :

Let Principal = P, Rate = R% per annum

P ( 1 + R/100 )^{2} / P (1 + R *1 / 100) = 6 / 5

( 1 + R / 100 ) = 6 / 5

R / 100 = 1 / 5

R = 20

Rate of interest = 20%