Question
The difference between compound interest and simple
interest on a sum of Rs. 20,000 for 2 years at the same rate is Rs. 200. What is the annual rate of interest?Solution
ATQ, For 2 years, Difference (CI − SI) = P × (r² / 100²), where r is rate %. Given: 200 = 20,000 × r² / 10,000 => 200 = 2 r² => r² = 100 => r = 10%
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