Multiple choice

Neha invested Rs. 2,50,000 for 2 years on which the difference between SI and CI is Rs. 169. What is the rate of interest?

  1. 3%

  2. 2 3 5 %

  3. 1 3 4 %

  4. 1%

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For two years, the difference between compound interest and simple interest is P(r/100)^2. Thus 169 = 250000(r/100)^2, giving r = 2.6%, or 2 3/5%.

AI explanation

The formula for the difference between compound interest and simple interest for two years is Difference = P(R^2)/10000. Substituting the given values gives 169 = 250000(R^2)/10000, which simplifies to 169 = 25(R^2). Solving for R gives R = 13/5, which is 2 3/5 %.

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