Question 77

If the amount received at the end of 2nd and 3rd year at Compound Interest on a certain Principal is Rs 25088, and Rs 28098.56 respectively, what is the rate of interest?

Solution

Compound interest at the end of 2nd year = Rs. 25,088

Compound interest at the end of 3rd year = Rs. 28,098.56

=> Difference = 28098.56 - 25088 = Rs. 3010.56

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

$$\therefore$$ Rate of interest, $$r = \frac{3010.56}{25088} \times 100 = 12 \%$$

=> Ans - (C)

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