Correct Answer - Option 1 : 7%
Given:
The difference between CI and SI for 2 years is Rs. 147
The sum is Rs. 30000
Concept Used:
The difference between compound and simple interest after two years = \( {PR^2 \ \over 100^2}\)
Where P = principal amount, R = rate of interest
Calculation:
As, difference of CI and SI for 2 years is Rs.147
⇒ \( {PR^2 \ \over 100^2}\) = 147
⇒ \( {30000R^2 \ \over 10000}\) = 147
⇒ R2 = 147/3 = 49
⇒ R = √49 = 7
∴ The rate of interest is 7%
