Answer:
The rate of interest applied fro compound interest is 24.5 %
The rate of interest applied simple interest is 37.5 %
Explanation:
Given as :
The Principal amount that is deposited = $ 800
The Time period = 24 months = 2 years
The Interest earn = $ 200
Let the rate of interest = R %
So, The Amount = Principal deposited - interest earn
Or, A = $ 800 - $ 200
∴ Amount = $ 600
From compounded method
Amount = Principal ×

Or, $ 600 = $ 200 ×

Or,
=

Or, 3 =

Or,
= (1 +
)
Or, 1.245 = (1 +
)
or, 1.245 - 1 =

or, 0.245 × 100 = R
So, the rate is = 24.5 %
Hence The rate of interest applied fro compound interest is 24.5 % Answer
From Simple Interest method
Simple Interest =

Or, $ 600 =

Or, $ 600 × 100 = $ 800 × R × 2
Or, R =

∴ R = 37.5 %
So, The rate is 37.5 %
Hence The rate of interest applied simple interest is 37.5 %Answer