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Question

(B) The formula for the difference between compound interest $(CI)$ and simple interest $(SI)$ for $2$ years is given by: Difference $= \frac{P 	imes

Vedclass · Accepted Answer

$8$

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(B) The formula for the difference between compound interest $(CI)$ and simple interest $(SI)$ for $2$ years is given by: Difference $= \frac{P 	imes R^2}{100^2}$ Where $P$ is the principal amount and $R$ is the rate of interest per annum. Given: $P = 2000$,Difference $= 12.8$. Substituting the values in the formula: $12.8 = \frac{2000 	imes R^2}{10000}$ $12.8 = \frac{2 	imes R^2}{10}$ $12.8 = 0.2 	imes R^2$ $R^2 = \frac{12.8}{0.2} = 64$ $R = \sqrt{64} = 8$ Therefore,the rate of interest is $8 \%$ per annum.

The difference between compound and simple interest at a certain rate on $Rs. 2000$ at the end of two years is $Rs. 12.8$. The rate of interest (in $\%$) per annum is:

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