Question

A sum amount of Rs. 9680 in 2 years and to Rs. 10648 in 3 years, compounded annually. Find the rate of interest.

• A. $12\%$
• B. $10\%$
• C. $12\%$
• D. $25\%$

Answer 1

The correct option is B

$10\%$

$A=P(1+(\frac{R}{100}{)}^3$

$Rs.9680=P(1+\frac{R}{100}{)}^2$ -----------(1)

$Rs.10648=P(1+\frac{R}{100}{)}^3$ -----------(2)

Dividing (2) and (1), we get

$\frac{10648}{9680}=(1+\frac{R}{100})$

$\frac{R}{100}=\frac{10648}{9680}-1$

$R=10\%$