Question
The difference between compound interest and simple
interest at the same rate for Rs. 1200 for 2 years is Rs. 48. 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, => 48 = 1200 (R/100)2 => R2 = (48 × 10000)/1200 => R = 20%
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