The C.I. on a certain sum for 2 years is Rs.410 and S.I. is Rs.400. The rate of interest per annum is ______________.

Dear Student!

Let the sum of money be Rs *P* and rate of interest be *r* % p.a.

S.I. on the sum of money, Rs *P* for 2 year

C.I on the given sum of money, Rs P for 2 years

Dividing (1) by (2), we get

Thus, the rate of interest is 5% p.a.

Cheers!

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