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The difference between compound interest and simple interest on a sum of Rs. 16,000 for two years is Rs. 160. Find the per annum rate of interest.
Question

The difference between compound interest and simple interest on a sum of Rs. 16,000 for two years is Rs. 160. Find the per annum rate of interest.

A.

11%

B.

12%

C.

15%

D.

10%

Correct option is D

Principal = 16000
Difference between two years = 160
By option if r = 10%
1st year CI = 1600
2nd year CI = 1600 + 160
SI for both years = 3200
Difference = 160

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