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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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