The interest on Rs 750 for 2 years is the same...

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The interest on Rs. 750 for 2 years is the same as the true discount on Rs. 960 due 2 years hence. If the rate of interest is the same in both cases, it is:

A. 12%

B. 14%

C. 15%

D. 16%

Answer: Option B

Solution(By Examveda Team)

S.I. on Rs. 750 = T.D. on Rs. 960
This means P.W. of Rs. 960 due 2 years hence is Rs. 750
∴ T.D. = Rs. (960 - 750) = Rs. 210
Thus, S.I. on R.s 750 for 2 years is Rs. 210
$$\eqalign{ & \therefore {\text{Rate}} = \left( {\frac{{100 \times 210}}{{750 \times 2}}} \right)\% \cr & = 14\% \cr} $$

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