Question
A certain sum of money invested at R% p.a. fetches a
compound interest (compounded annually) of 1800 and simple interest of Rs.1600 at the end of 2 years. Find the value of ‘R’.Solution
Difference between compound interest and simple interest for 2 years = 1800 – 1600 = Rs.200 Simple interest for 1 year = 1600/2 = Rs.800 So, R = (200/800) × 100 = 25%
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