On a sum of money, the simple interest for 2 years is Rs. 320, while the compound interest is Rs. 340, the rate of interest being the same in both the cases. The rate of interest is  Choose the correct choice:
A) 15%	B) 14.25%	C) 12.5%	D) 10.5%	E) 11.5%
Explanation:   --------------------------------------------------------------------------------------   Solution 1   ---------------------------------------------------------------------------------------   Simple interest for 2 years is Rs. 320   =&gt; Simple interest for first year = 320/2= 
<gadget id="calculator">320/2</gadget>
<output>160</output>
160=&gt; Similarly, simple interest for second year is also 160   Compound Interest for first year = 160   Compound Interest for second year = 340-160= 
<gadget id="calculator">340-160</gadget>
<output>180</output>
180   we can see that compound Interest for second year is more than   simple interest for second year by  180-160= 
<gadget id="calculator"> 180-160</gadget>
<output>20</output>
20   i.e., Rs.20 is the simple interest on Rs.160 for 1 year   R= 100 × SI/PT = (100 × 20)/(160 × 1) = 12.5%   --------------------------------------------------------------------------------------   Solution 2   ---------------------------------------------------------------------------------------   The difference between compound interest and simple interest on Rs. P for 2 years at R% per annum   = (R × SI)/(2 × 100)   Difference between the compound interest and simple interest = 340 - 320= 
<gadget id="calculator">340 - 320</gadget>
<output>20</output>
20   (R × SI)/(2 × 100)= 20   (R × 320)/(2 × 100) = 20   R = 20 × 100 × 2320 = 12.5%   Answer: Option 12.5%
<result>C</result>
On a sum of money, the simple interest for 2 years is Rs. 320, while the compound interest is Rs. 340, the rate of interest being the same in both the cases. The rate of interest is