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      Question

      The difference between compound interest and simple

      interest at rate of 16% per annum for 2 years is Rs. 192. Find the simple interest obtained on same amount for a period of 2 years at rate of 10% per annum.
      A Rs. 2000 Correct Answer Incorrect Answer
      B Rs. 3000 Correct Answer Incorrect Answer
      C Rs. 2400 Correct Answer Incorrect Answer
      D Rs. 1500 Correct Answer Incorrect Answer
      E Rs. 1200 Correct Answer Incorrect Answer

      Solution

      Let, the amount be Rs. P. P[(1 + 16/100)2 – 1] – P Γ— 16% Γ— 2 = 192 P Γ— 0.3456 – P Γ— 0.32 = 192 P Γ— 0.0256 = 192 P = 192 Γ· 0.0256 = Rs. 7500 Therefore, required interest = 7500 Γ— 10% Γ— 2 = Rs. 1500

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