The difference between the compound interest and simple

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The difference between the compound interest and simple interest on ₹ 10,000 for 2 years is ₹ 25. The rate of interest per annum is

1. 5%
2. 7%
3. 10%
4. 12%

Correct Option: A

Here , Principal = ₹ 10000 , Difference = C.I. - S.I. = ₹ 25 , Time = 2 years , Rate = R%
We can find required answer with the help of given formula ,

Difference =	PR²
	10000

⇒ 25 =	10000 × R²
	10000

⇒ R = 5%