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    Question

    The difference between compound interest and simple

    interest at rate of 28% per annum for 2 years is Rs. 392. 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
    E Rs. 1200 Correct Answer Incorrect Answer

    Solution

    Let, the amount be Rs. P. P[(1 + 28/100)2 – 1] – P Γ— 28% Γ— 2 = 392 P Γ— 0.6384 – P Γ— 0.0784 = 392 P Γ— 0.0784 = 392 P = 392 Γ· 0.0784 = Rs. 5000 Therefore, required interest = 5000 Γ— 10% Γ— 2 = Rs. 1000

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