Question
Compound interest on a certain sum of money for 2 years
is Rs.6800 while the simple interest on the same sum for the same time period is Rs.6400. Find the rate of interest.Solution
SI for 1 year = 6400/2 = Rs.3200 Difference between CI and SI for 2 years = Rs.(6800 – 6400) = Rs.400 Required rate = (400/3200) x 100 = 12.5%
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