The rate of the amount for 2 years under compound interest annual and for one year Under simple interest is 6 is to 5.when the rate of interest is same then the value of rate of interest is?
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compunding : P (1 + r )^2 = C by simple interest: S = P ( 1 + r )
Given C / S = 6/5 => 5C = 6 S
=> 5 P (1+r)^2 = 6 P (1 + r)
==> 5 ( 1 + r ) = 6 => r = 1/5 => r = 20%
Given C / S = 6/5 => 5C = 6 S
=> 5 P (1+r)^2 = 6 P (1 + r)
==> 5 ( 1 + r ) = 6 => r = 1/5 => r = 20%
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