Correct Answer: Option C
In C I, the simple interest for the previous year is added to the principal and the interest for this amount is also included in the interest of the current year.
Thus, the difference 412 -400 = Tk.12 is the interest for the first years S I at the same rate of interest.
Here, the first year’s SI = 400/2 = Tk.200
Tk. 12 is the interest for Tk.200 in one year.
So, the rate of interest = (SI × 100)/Pn
= (12×100/) 200 × 1
= 6% p.a.
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