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The difference between the compound interest and the simple interest accrued on an amount of Rs. 18,000 in 2 years was 405 . What was the rate of interest p.c.p.a. ?
Options:
A .  12%
B .  13%
C .  14%
D .  15%
Answer: Option D

Let the rate be R% p.a.  Then,

`[18000(1 + R/100)^2 -  18000] - ((18000 xx R xx 2)/(100)) = 405`

`hArr     18000[((100 +R)^2)/(10000) - 1 - (2R)/(100)] = 405`

`hArr      18000[((100 +R)^2 - 10000 - 200R)/(10000)] = 405`

`hArr      9/5 R^2  = 405`

`hArr     R^2   = ((405 xx 5)/(9))`

`hArr     R^2 =  225`

`hArr     R= 15`

`:.`        Rate =  15%



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