Question

A sum of money invested at compounded interest amounts to Rs. $800$ in $3$ years and to Rs. $840$ in $4$ years. The rate on interest per annum is

• A. $3\%$
• B. $4\%$
• C. $5\%$
• D. $6\%$

Answer 1

The correct option is C $5\%$

Given, principal $=$ Rs. $800$

S.I on Rs. $800$ for $1$ year $=40$
$\therefore$ rate $=\frac{100\times 40}{80}=5\%$

Therefore, the rate of interest per annum is $5\%$.