Question 89

If the amount received at the end of 2nd and 3rd year at Compound Interest on a certain Principal is Rs 24200, and Rs 26620 respectively, what is the rate of interest?

Solution

Compound interest at the end of 2nd year = Rs. 24,200

Compound interest at the end of 3rd year = Rs. 26,620

=> Difference = 26620 - 24200 = Rs. 2420

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

$$\therefore$$ Rate of interest, $$r = \frac{2420}{24200} \times 100 = 10 \%$$

=> Ans - (A)

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