# The difference between the compound interest and the simple interest for 2 years on a sum of Rs.12000 at certain rate of interest is Rs 120. Find the rate of interest. Option 1) 100% p.a         Option 2)   110% p.a     Option 3) 10% p.a      Option 4) 105% p.a   Option 5) 11% p.a

Difference for 2 years $= Pr^{2}/100^{2}$
$120 = 12000 \times \frac{r^{2} }{10000}$
$r^{2} = 100$
$r = 10$ %