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The difference between the compound interest and simple interest for the amount ₹ 5,000 in 2 years is ₹ 32. The rate of interest is
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- 5%
- 8%
- 10%
- 12%
Correct Option: B
Given that , Principal = ₹ 5,000 , Difference = C.I. - S.I. = ₹ 32 , Time = 2 years , Rate = r%
Using the given formula ,
| Difference of 2 years = | |
| 10000 |
| ⇒ 32 = | |
| 10000 |
| ⇒ r2 = | = ₹ 64 | |
| 5000 |
⇒ r = √ 64 = 8%
