Join WhatsApp Icon CAT WhatsApp Group
Question 43

A sum of money compounded annually becomes Rs.625 in two years and Rs.675 in three years. The rate of interest per annum is

As we know, formulae of compound interest for 2 years  will be:
$$P(1+\frac{r}{100})^{2}$$ = 625  (Where r is rate, P is principal amount)
For 3 years:
$$P(1+\frac{r}{100})^{3}$$ = 675
Dividing above two equations we will get r=8%

video

Create a FREE account and get:

  • All Quant CAT complete Formulas and shortcuts PDF
  • 38+ CAT previous year papers with video solutions PDF
  • 5000+ Topic-wise Previous year CAT Solved Questions for Free