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What will be the difference between the compound interest (interest is compounded annually) and simple interest on a sum of Rs. 6400 at the rate of 10% per annum for 2 years?

ARs. 90

BRs. 72

CRs. 128

DRs. 64

Answer:

D. Rs. 64

Read Explanation:

Effective rate difference for 2 years = (r2/100) = (102/100) = 1% ∴ Required difference = 1% of 6400 = 6400 × (1/100) = 64.


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