Suppose a certain sum doubles in 2 yr at r% rate of simple interest per annum and R°/o rate of interest per annum compounded annually.
(a) r < R
(c)R = r
(d) Cannot be determined
(b) If the total amount received after 2 yr is same for both simple interest and compound interest on same principal, then the rate of simple interest is
greater than the rate of compound interest.
Hence, option (b) is correct.