Question 81

If the amount received at the end of 2nd and 3rd year at Compound Interest on a certain Principal is Rs 33708, and Rs 35730.48 respectively, what is the rate of interest?

Solution

Compound interest at the end of 2nd year = Rs. 33,708

Compound interest at the end of 3rd year = Rs. 35,730.48

=> Difference = 35730.48 - 33708 = Rs. 2022.48

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

$$\therefore$$ Rate of interest, $$r = \frac{2022.48}{33708} \times 100 = 6 \%$$

=> Ans - (A)

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