Question 37

If the amount received at the end of 2nd and 3rd year at Compound Interest on a certain Principal is Rs 16854, and Rs 17865.24 respectively, what is the rate of interest?

Solution

Compound interest at the end of 2nd year = Rs. 16,854

Compound interest at the end of 3rd year = Rs. 17,865.24

=> Difference = 17865.24 - 16854 = Rs. 1011.24

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

$$\therefore$$ Rate of interest, $$r = \frac{1011.24}{16854} \times 100 = 6 \%$$

=> Ans - (C)

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