Question 92

If the amount received at the end of 2nd and 3rd year at Compound Interest on a certain Principal is Rs 28090, and Rs 29775.4 respectively, what is the rate of interest?

Solution

Compound interest at the end of 2nd year = Rs. 28,090

Compound interest at the end of 3rd year = Rs. 29,775.4

=> Difference = 29775.4 - 28090 = Rs. 1685.4

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

$$\therefore$$ Rate of interest, $$r = \frac{1685.4}{28090} \times 100 = 6 \%$$

=> Ans - (A)

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