Question
Compound interest on a certain sum of money for 2 years
is Rs.2600 while the simple interest on the same sum for the same time period is Rs.2500. Find the rate of interest.Solution
SI for 1 year = 2500/2 = Rs.1250 Difference between CI and SI for 2 years = Rs.(2600 – 2500) = Rs.100 Required rate = (100/1250) x 100 = 8%
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