Question
The difference between compound interest and simple
interest at the same rate for Rs. 3200 for 2 years is Rs. 128. The rate of interest per annum is:Solution
When difference is given between SI and CI for 2 years, then the formula is: CI – SI = P (R/100)2 According to the question, => 128 = 3200 (R/100)2 => R2 = (128 × 10000)/3200 => R = 20%
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