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      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?
      A Rs.2500 Correct Answer Incorrect Answer
      B Rs.5500 Correct Answer Incorrect Answer
      C Rs.4100 Correct Answer Incorrect Answer
      D Rs.5600 Correct Answer Incorrect Answer
      E none of these Correct Answer Incorrect Answer

      Solution

      ATQ, Determine the compound interest rate 'b': Compute the simple interest: The interest earned would have been Rs.5600.

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