Question
Kiran lent Rs. 40,000 to a friend at a compound interest
rate of 'b%' per annum, compounded annually. After one year, the friend returned Rs. 44,800. If Kiran had lent the money at simple interest of (b + 2)% per annum instead, how much interest would he have earned?Solution
ATQ, Determine the compound interest rate 'b': 
Compute the simple interest: 
The interest earned would have been Rs.5600.
What is the profit percent or loss percent incurred in the transaction?
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