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Discussion :: Compound Interest

1.  What is the rate of interest p.c.p.a.? I. An amount doubles itself in 5 years on simple interest. II. Difference between the compound interest and the simple interest earned on a certain amount in 2 years is Rs. 400. III. Simple interest earned per annum is Rs. 2000.
2.  A. I only B. II and III only C. All I, II and III D. Any two of the three E. I only or II and III only

Explanation :

I.$$\frac {P*R*5 } { 100 } =$$     R = 20.

II.P[1+$$\frac {R} {100 }] ^2$$-p-$$\frac {P*R*2 } { 100 } =$$400     PR2 = 4000000.

III.$$\frac {P*R*1 } { 100 } =$$2000=     PR = 200000

$$\frac {PR^2} {PR}$$=$$\frac {4000000 } { 2 00000}$$     R = 20

Thus I only or (II and III) give answer.

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