The difference between compound interest and simple interest at rate of 26% per annum for 2 years is Rs. 507. Find the simple interest obtained on same amount for a period of 2 years at rate of 10% per annum.
Let, the amount be Rs. P. P[(1 + 26/100)2 – 1] – P × 26% × 2 = 507 P × 0.5876 – P × 0.52 = 507 P × 0.0676 = 507 P = 507 ÷ 0.0676 = Rs. 7500 Therefore, required interest = 7500 × 10% × 2 = Rs. 1500
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