A certain sum of money invested at R% p.a. fetches a compound interest (compounded annually) of 1630.5 and simple interest of Rs.1500 at the end of 2 years. Find the value of ‘R’.
Difference between compound interest and simple interest for 2 years = 1630.5 – 1500 = Rs.130.5 Simple interest for 1 year = 1500/2 = Rs.750 So, R = (130.5/750) × 100 = 17.4%
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