Question

# A sum of money is invested at compound interest payable annually. The interest in two successive years is Rs. 275 and Rs. 300. Find the rate of interest.

Solution

## Given that,Interest at the end of $$1^{st}$$ year $$=Rs.\ 275$$Interest at the end of $$2^{nd}$$ years $$=Rs.\ 300$$$$\therefore \$$ Interest for $$1$$ year $$=300-275=Rs.\ 25$$This interest will be on $$Rs. \ 275$$Hence, rate of interest $$=\dfrac{100\times I}{P\times T}\\$$                                       $$=\dfrac{100\times 25}{275\times 1}\\$$                                       $$=\dfrac{100}{11}$$                                       $$=9\dfrac{1}{11}\\$$Thus, the required rate of interest is $$9\dfrac{1}{11}\%$$.Mathematics

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