The difference between compound interest and simple interest on an amount of Rs. 15,000 for 2 years is Rs. 96. What is the rate of interest per annum?

Answer: Option A

Explanation:

		15000 x		1 +	R		2	- 15000		-		15000 x R x 2		= 96
					100							100

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%.