[tex]\huge\red{QUESTION:}[/tex]
If the difference of the CI and the SI on a sum of money for 2 years is 1% of the sum of money then find the annual rate of interest.
[tex]\huge\green{Thank \: you!! }[/tex]
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[tex]\huge\red{QUESTION:}[/tex]
If the difference of the CI and the SI on a sum of money for 2 years is 1% of the sum of money then find the annual rate of interest.
[tex]\huge\green{Thank \: you!! }[/tex]
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The other answer given is correct but I will formulate it differently in case that helps some readers
Firstly CI is compound interest
We are asked to solve for the rate r which in two years has a future value (1 + r )^2 and has we calculated the future value using Simple interest method it be 1% less