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If the compound interest earned on a certain sum for 2 years is twice the amount of simple interest for 2 years, then the rate of interest per annum is _______ percent

Solution

✅ Correct Option: 1

Understand the following table (interest earned for each year is present).

For the first year, the SI and CI is the same. Let's take it to be =x= x.

For the second year, SI remains the same.

However, in the case of CI, we have to calculate the interest on the first year's interest (x)(x) too!

Solution figure for IPMAT Indore 2019 MCQ question 1 (Arithmetic)

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