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%
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