Arithmetic Ability
Compound Interest

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Q.

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

View Answer

Correct choice: D

Explanation:

I.P*R*5/100=P⇔R=20 II.P(1+R/100)2−P−P*R*2/100=400=>pR2=4000000 III.P*R*1/100=2000=>PR=200000 PR2PR=4000000/200000⇔R=20 Thus I only or (II and III) give answer. Correct answer is (D)
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