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    Question

    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.
    A Rs. 2000 Correct Answer Incorrect Answer
    B Rs. 3000 Correct Answer Incorrect Answer
    C Rs. 1000 Correct Answer Incorrect Answer
    D Rs. 1500 Correct Answer Incorrect Answer

    Solution

    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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