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ATQ, Let, the interest received on SIP 'X' and SIP 'Y' be Rs.'100x' and Rs.'109x', respectively. In case of simple interest, equal interest is received in each year at same rate of interest. So, the simple interest received on first and second year both = (100x/2) = Rs.'50x' At same rate of interest, Simple interest received in first year = Compound interest received in first year = (100x/2) = Rs.'50x' So, the compound interest received on second year = 109x - 50x = Rs.'59x' So, the interest in second year received on interest received on first year at 'R%' p.a.,= 59x - 50x = Rs.'9x' So, the rate of interest, 'R' = (9x/50x) × 100 = 18%
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