On a sum of money the simple interest for 2 years is Rs 660 while the compound interest is Rs 696 30......

On a sum of money, the simple interest for 2 years is Rs. 660,while the compound interest is Rs.696.30,the rate of interest being the same in both the cases. The rate of interest is

Difference in C.I and S.I for 2 years

= Rs(696.30-660) =Rs. 36.30.

S.I for one years = Rs330.

S.I on Rs.330 for 1 year =Rs. 36.30

Rate = (100x36.30/330x1)% = 11%

Hence, option 1 is the correct answer.

By: Amit Kumar