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A loan is to be returned in two equal yearly instalments. If the rate of interest is , compounded annually and each instalment is , then find the total interest charged (in ).
(a)
(b)
(c)
(d)

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Important Questions on Simple and Compound Interest
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What is the ratio of simple interest earned on certain amount at the rate of p.a. for years and that for years ?
1.
2.
3.
4.

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What will be the simple interest on a sum of Rs. 10000 after 3 years at the rate of 7.3% per annum?
(A) Rs. 2,190
(B) Rs. 2,19,000
(C) Rs. 2,200
(D) Rs. 2,180

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A sum of becomes in years at a certain rate of compound interest. What will be the sum (in ) after years?

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On a certain principal, simple interest amounts to Rs. 1000 in 1 year at the rate of 10% p.a. What will be the effective rate of interest if the same is compounded on a half-yearly basis?
1. 10.10
2. 10.15
3. 10.20
4. 10.25

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