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      Question

      The difference between compound interest and simple

      interest on a sum for 2 years at 10% per annum is Rs 40. Find the principal.
      A 4000 Correct Answer Incorrect Answer
      B 5560 Correct Answer Incorrect Answer
      C 4090 Correct Answer Incorrect Answer
      D 7212 Correct Answer Incorrect Answer

      Solution

      ATQ, For 2 years, CI - SI = P x (R/100)2 40 = P x (10/100)2 40 = P x 1/100 P = 4000

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