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A certain sum earns simple interest of Rs. 800 in 2 years at a certain rate of interest. If the same sum earns compound interest of Rs. 845 in the same period of 2 years, What must be the rate of interest?

  • A.5% p.a.
  • B.7.5% p.a.
  • C.10% p.a.
  • D.12.5% p.a.

Answer: C

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