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### Discussion :: Compound Interest

1. The difference between compound interest and simple interest on an amount of Rs. 15,000 for 2 years is Rs. 96. What is the rate of interest per annum?

2.  A. 8 B. 10 C. 12 D. Cannot be determined E. None of these

Explanation :

[15000$$*(1+\frac { R } { 100 } )^2-15000]$$-[$$[\frac { 15000*R*2 } { 100 } ]=96$$

15000[$$*(1+\frac { R } { 100 } )^2-1$$-$$\frac { 2R } { 100 } ]$$=96

15000[$$[\frac { (100+R^2)-10000-(200*R) } {10000 } ]=96$$

R2 =$$[\frac { 96*2 } { 3 }]$$=64

R = 8.

Rate = 8%.

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