Question 26

If the amount received at the end of 2nd and 3rd year at Compound Interest on a certain Principal is Rs 32448 and Rs 33745.92 respectively, what is the rate of interest?

Solution

Compound interest at the end of 2nd year = Rs. 32,448

Compound interest at the end of 3rd year = Rs. 33,745.92

=> Difference = 33745.92 - 32448 = Rs. 1297.92

This is the interest obtained on the amount of 2nd year.

$$\therefore$$ Rate of interest, $$r = \frac{1297.92}{32448} \times 100 = 4 \%$$

=> Ans - (D)

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