Question
Simple interest and compound
interest (compounded annually) earned on a certain sum at the end of 2 years are Rs. 3600 and Rs. 3744. Find the rate of interest p.a.Solution
ATQ,
Simple interest for 1 year = 3600/2 = Rs.1800 Difference between SI and CI for 2 years = 3744 − 3600 = Rs.144 So, desired rate = 144/1800 ×100 = 8%
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