Given that the interest is only earn on primciple, if an investment of rs 1000 to be rs 1440 in two years, what is the rate of interest?
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The amount Interest in 1 year = ( PR ) / 100
Simple Interest in 2 years (SI) = ( 2PR ) / 100
Given that,
Principle amount (P) = 1000
Received amount (A) = 1440
A = P + SI
1440 = 1000 + ( 2x1000xR ) / 100
1440 - 1000 = 20xR
440 = 20xR
R = 22%
So, the rate of interest earned is 22%
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