Question 85

If the amount received at the end of 2nd and 3rd year at Compound Interest on a certain Principal is Rs 34992, and Rs 37791.36 respectively, what is the rate of interest?

Solution

Compound interest at the end of 2nd year = Rs. 34,992

Compound interest at the end of 3rd year = Rs. 37,791.36

=> Difference = 37791.36 - 34992 = Rs 2799.36

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

$$\therefore$$ Rate of interest, $$r = \frac{2799.36}{34992} \times 100 = 8 \%$$

=> Ans - (C)

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