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Simple interest on a sum at 4% per annum for 2 years is Rs.80. The compound interest on the same sum for the same period is ?
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- Rs. 81.60
- Rs. 160
- Rs. 1081.60
- None of these
Correct Option: A
principle = (interest x 100) / (time x rate)
= Rs. (100 x 80)/(4 x 2) = Rs. 1000
∴ C.I. =Rs.[{1000 x (1 + 4/100)2 - 1000}]
= Rs. 81.60
