Question

A certain sum amounts to Rs. 5,292 in two years and Rs. 5,556.60 in three years, interest being compounded annually. Find the rate of interest.

• A. 9%
• B. 15%
• C. 7%
• D. 5%

Answer 1

Answer: (D)

5%

Sum after 2 years $=Rs.5292$

Sum after 3 years $=Rs.5556.60$

Interest for onr year $=5556.60-5292=Rs.264.60$

C.I for 1 year $=$ S.I for 1 year

$Interest=\frac{PRT}{100}$

$\Rightarrow 264.60=\frac{5292\times R\times 1}{100}$

$\Rightarrow R=\frac{264.60\times 100}{5292}=5$%