Question
A certain sum of money invested at R% p.a. fetches a
compound interest (compounded annually) of 1620 and simple interest of Rs.1500 at the end of 2 years. Find the value of âRâ.Solution
Difference between compound interest and simple interest for 2 years = 1620 â 1500 = Rs.120 Simple interest for 1 year = 1500/2 = Rs.750 So, R = (120/750) Ă 100 = 16%
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