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Grade 1010 grade maths

The compound interest on a certain sum for two years is Rs. 618 whereas the simple interest on the same sum at the same rate for two years is Rs. 600. The ratio of interest per annum is 1. 3%2. 18%3. 6%4. 9%

Profile image of Drds
9 Years agoGrade 10
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1 Answer

Profile image of Vikas TU
9 Years ago
compound interest is A = P (1 + r/n) nt
Hence given,
618 =  P (1 + r) 2
and
600 = P*r*2/100
dividing both we get,
618/600 = (10(1+r)/r)^2
we get r= 3% approx.