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    Question

    Find the rate of simple interest at which Rs. 7500

    should be invested for 2 years so that the interest earned will be same as the interest received when the same amount is invested at 50% at compound interest compounded annually for same time period.
    A 62.5% Correct Answer Incorrect Answer
    B 60.5% Correct Answer Incorrect Answer
    C 61.5% Correct Answer Incorrect Answer
    D 63.5% Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Compound interest earned in 2 years = 7500 × [(1.50)^2 – 1] = 1.25 × 7500 = Rs. 9375 Let the rate of simple interest is R% According to question, (7500 × R × 2)/100 = 9375 150 × R = 9375 R = 62.5%

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