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The difference between the compound interest and simple interest on Rs. 10,000 for 2 years is Rs. 25. The rate of interest per annum is1). 5%2). 7%3). 10%4). 12% |
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Answer» GIVEN, PRINCIPAL P = RS. 10,000 and Time period, T= 2 years Let the rate of INTEREST per annum be R%. Formula used: Simple interest, S.I = P × R × T Compound interest, C.I = P × [(1 + R)T - 1] ∴ S.I = 10000 × R × 2 = Rs. 20000R And, C.I = 10000 × [(1 + R)2 – 1] = Rs. (10000R2 + 20000R) Given that, C.I – S.I = Rs. 25 ∴ (10000R2 + 20000R) – 20000R = 25 ⇒ R2 = 0.0025 ⇒ R = 0.05 ∴ R% = 0.05 × 100= 5% Hence, the rate of interest per annum is 5%. |
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