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If the difference between SI and CI for ...

If the difference between SI and CI for 2 years is 35 and three years is 77 then find rate of interest?

A

`15%`

B

`22%`

C

`20%`

D

`25%`

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AI Generated Solution

The correct Answer is:
To solve the problem, we need to find the rate of interest (R) given the differences between Simple Interest (SI) and Compound Interest (CI) over 2 years and 3 years. ### Step-by-Step Solution: 1. **Understand the Given Information:** - The difference between CI and SI for 2 years is Rs. 35. - The difference between CI and SI for 3 years is Rs. 77. 2. **Use the Formula for the Difference Between CI and SI:** - The difference between CI and SI for 2 years can be expressed as: \[ \text{Difference}_{2 \text{ years}} = \frac{P \cdot R^2}{100^2} \] - The difference between CI and SI for 3 years can be expressed as: \[ \text{Difference}_{3 \text{ years}} = \frac{P \cdot R^3}{100^3} \] 3. **Set Up the Equations:** - From the information given: \[ \frac{P \cdot R^2}{100^2} = 35 \quad \text{(1)} \] \[ \frac{P \cdot R^3}{100^3} = 77 \quad \text{(2)} \] 4. **Divide Equation (2) by Equation (1):** - This will help eliminate P: \[ \frac{\frac{P \cdot R^3}{100^3}}{\frac{P \cdot R^2}{100^2}} = \frac{77}{35} \] - Simplifying gives: \[ \frac{R}{100} = \frac{77}{35} \] 5. **Cross Multiply to Solve for R:** - Rearranging gives: \[ R = \frac{77 \cdot 100}{35} \] 6. **Calculate R:** - Simplifying: \[ R = \frac{7700}{35} = 220 \] 7. **Find the Rate of Interest:** - Since we need the percentage, we divide by 100: \[ R = 22\% \] ### Conclusion: The rate of interest is **22%**. ---
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