Question 77

If the amount received at the end of 2nd and 3rd year at Compound Interest on a certain Principal is Rs 22472, and Rs 23820.32 respectively, what is the rate of interest?

Solution

Compound interest at the end of 2nd year = Rs. 22,472

Compound interest at the end of 3rd year = Rs. 23,820.32

=> Difference = 23820.32 - 22472 = Rs. 1348.32

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

$$\therefore$$ Rate of interest, $$r = \frac{1348.32}{22472} \times 100 = 6 \%$$

=> Ans - (B)

Share on Whatsapp Share on Whatsapp

Create a FREE account and get: