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      Question

      A farmer planned to control pests in his crop to

      increase the yield. He took a loan of ₹ 5,000 at a fixed annual interest rate for 2 years, compounded annually. He paid interest of ₹ 1,272. What was the annual interest rate? 
      A 10% Correct Answer Incorrect Answer
      B 15% Correct Answer Incorrect Answer
      C 12% Correct Answer Incorrect Answer
      D 5% Correct Answer Incorrect Answer

      Solution

      The correct answer is C

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