Question
Compound interest on a certain sum of money for 2 years
is Rs.2860 while the simple interest on the same sum for the same time period is Rs.2600. Find the rate of interest.Solution
SI for 1 year = 2600/2 = Rs.1300 Difference between CI and SI for 2 years = Rs.(2860 – 2600) = Rs.260 Required rate = (260/1300) x 100 = 20%
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