Question

A sum of money is invested at C.I. payable annually. The amounts of interest in two successive years are Rs. 2,700 and Rs. 2,880. Find the rate of interest.

• A. $2\frac{1}{3}\%$
• B. $6\frac{2}{3}\%$
• C. $7\frac{5}{3}\%$
• D. $11\frac{7}{3}\%$

Answer 1

Answer: (B)

$6\frac{2}{3}\%$

$\because$ Difference between the C.I. of two successive years
$=Rs.2.880-Rs.2700=Rs.180$
$\to$ Rs.180 is the interest of one year on Rs. 2,700.
$\therefore$ Rate of mterest $=\frac{100\times I}{P\times T}\%=\frac{100\times 180}{2,700\times 1}\%=6\frac{2}{3}\%$