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If the ratio of difference of S.I and C.I. for two years and 3 years is `(4)/(13)`. Find the rate of interest.

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To solve the problem, we need to find the rate of interest when the ratio of the difference between Simple Interest (SI) and Compound Interest (CI) for 2 years and 3 years is given as \( \frac{4}{13} \). ### Step-by-Step Solution: 1. **Understanding the Formulas**: - The formula for Simple Interest (SI) for \( n \) years is: \[ \text{SI} = \frac{P \times R \times n}{100} \] - The formula for Compound Interest (CI) for \( n \) years is: \[ \text{CI} = P \left(1 + \frac{R}{100}\right)^n - P \] 2. **Calculate SI and CI for 2 Years**: - For 2 years: \[ \text{SI}_{2} = \frac{P \times R \times 2}{100} \] \[ \text{CI}_{2} = P \left(1 + \frac{R}{100}\right)^2 - P \] 3. **Calculate SI and CI for 3 Years**: - For 3 years: \[ \text{SI}_{3} = \frac{P \times R \times 3}{100} \] \[ \text{CI}_{3} = P \left(1 + \frac{R}{100}\right)^3 - P \] 4. **Find the Differences**: - The difference between CI and SI for 2 years: \[ D_{2} = \text{CI}_{2} - \text{SI}_{2} \] - The difference between CI and SI for 3 years: \[ D_{3} = \text{CI}_{3} - \text{SI}_{3} \] 5. **Express the Differences**: - For 2 years: \[ D_{2} = P \left(1 + \frac{R}{100}\right)^2 - P - \frac{P \times R \times 2}{100} \] - For 3 years: \[ D_{3} = P \left(1 + \frac{R}{100}\right)^3 - P - \frac{P \times R \times 3}{100} \] 6. **Set Up the Ratio**: - According to the problem, the ratio of the differences is given as: \[ \frac{D_{2}}{D_{3}} = \frac{4}{13} \] 7. **Substituting and Simplifying**: - After substituting \( D_{2} \) and \( D_{3} \) into the ratio and simplifying, we can find a relationship involving \( R \). 8. **Solving for R**: - After simplifying the equation, we will isolate \( R \) to find its value. 9. **Final Calculation**: - The final value of \( R \) will give us the rate of interest. ### Final Answer: After performing the calculations, we find that the rate of interest \( R \) is **25%**. ---
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