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Question
The compound interest on a certain sum for 2 years at 10% per annum is Tk. 525. The simple interest on the same sum for double the time at half the rate percent per annum is :
Tk. 400
Tk. 500
Tk. 600
Tk. 800
ANSWER : 2
Descrption
<p>We know, </p> <p>C = P ( 1 + r)<sup>n</sup></p> <p>I + P = P ( 1 + r)<sup>n</sup></p> <p>525 + P = P (1 + 10%)<sup>2</sup></p> <p>525 = 1.21P - P</p> <p>P = 525/0.21 </p> <p>P = 2500</p> <p>I = pnr = 2500×4×5% = 500</p>
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