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The difference between C.I. and S.I. at ...

The difference between C.I. and S.I. at a certain rate on rs. 2000 at the end of 2years is rs.12.8. The rate of inerest is:

A

a. 6.8%

B

b. 8%

C

c. 12.8%

D

d. 16.8%

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The correct Answer is:
To find the rate of interest given that the difference between Compound Interest (C.I.) and Simple Interest (S.I.) on Rs. 2000 at the end of 2 years is Rs. 12.8, we can follow these steps: ### Step-by-Step Solution: 1. **Understand the Formula**: The difference between C.I. and S.I. for 2 years can be calculated using the formula: \[ \text{Difference} = \frac{P \cdot r^2}{100^2} \] where \( P \) is the principal amount and \( r \) is the rate of interest. 2. **Substitute the Known Values**: We know: - Difference = Rs. 12.8 - Principal \( P = Rs. 2000 \) Substituting these values into the formula gives: \[ 12.8 = \frac{2000 \cdot r^2}{100^2} \] 3. **Simplify the Equation**: Rewrite \( 100^2 \) as \( 10000 \): \[ 12.8 = \frac{2000 \cdot r^2}{10000} \] To eliminate the fraction, multiply both sides by 10000: \[ 12.8 \cdot 10000 = 2000 \cdot r^2 \] \[ 128000 = 2000 \cdot r^2 \] 4. **Solve for \( r^2 \)**: Divide both sides by 2000: \[ r^2 = \frac{128000}{2000} \] \[ r^2 = 64 \] 5. **Find \( r \)**: To find \( r \), take the square root of both sides: \[ r = \sqrt{64} \] \[ r = 8 \] 6. **Conclusion**: The rate of interest is: \[ r = 8\% \] ### Final Answer: The rate of interest is **8%**.
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