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The difference between compound interest and simple interest at the same rate on Rs 10,000 for 2 years is Rs 1296. The rate of interest per annum is 
  • a)
    12% 
  • b)
    24% 
  • c)
    36% 
  • d)
    48% 
Correct answer is option 'C'. Can you explain this answer?
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Given Information:
- Principal amount (P) = Rs 10,000
- Time (t) = 2 years
- Difference between compound interest and simple interest = Rs 1296

Formula for Simple Interest (SI):
SI = P * t * r / 100

Formula for Compound Interest (CI):
CI = P * (1 + r/100)^t - P

Given Difference:
CI - SI = Rs 1296

Calculation:
- Rs 1296 = P * (1 + r/100)^t - P - P * r * t / 100
- Rs 1296 = 10000 * (1 + r/100)^2 - 10000 - 200 * r
- Rs 1296 = 10000 * (1 + 2r/100 + r^2/10000) - 10000 - 200r
- Rs 1296 = 10000 + 200r + r^2 - 10000 - 200r
- r^2 = 1296
- r = 36%
Therefore, the rate of interest per annum is 36% (option c).
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The difference between compound interest and simple interest at the same rate on Rs 10,000 for 2 years is Rs 1296. The rate of interest per annum isa)12%b)24%c)36%d)48%Correct answer is option 'C'. Can you explain this answer?
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