CAT 1991 Question Paper Question 43

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

Solution

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%


View Video Solution


Create a FREE account and get:

  • All Quant CAT Formulas and shortcuts PDF
  • 30+ CAT previous papers with solutions PDF
  • Top 500 CAT Solved Questions for Free

Comments
cracku

Boost your Prep!

Download App