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      Question

      The difference between the compound interest and simple

      interest on a certain sum for 2 years at 12% per annum is 144. Find the principal amount.
      A 7,000 Correct Answer Incorrect Answer
      B 7,500 Correct Answer Incorrect Answer
      C 8,000 Correct Answer Incorrect Answer
      D 10,000 Correct Answer Incorrect Answer

      Solution

      Let the principal be P 144 = PΓ— 144/10000 P = 10,000

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