Compound interest on a certain sum of money for 2 years is Rs.3400 while the simple interest on the same sum for the same time period is Rs.3200. Find the rate of interest.
SI for 1 year = 3200/2 = Rs.1600 Difference between CI and SI for 2 years = Rs.(3400 – 3200) = Rs.200 Required rate = (200/1600) x 100 = 12.5%
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