Question

A sum of money placed out at compound interest amounts to Rs. 20,160 in 3 years and to Rs. 24,192 in 4 years. Calculate the rate of interest.

• A. 12%
• B. 15%
• C. 20%
• D. 25%

Answer 1

Answer: (C)

20%

Amount in three year $=Rs.20160$

Amount in four year $=Rs.24192$

Interest in 1 year $=24192-20160=Rs.4032$

Let the rate of interest $=R$%

C.I fir 1 year=S.I for 1 year$=\frac{PRT}{100}$

$\Rightarrow 4032=\frac{20160\times R\times 1}{100}$

$\Rightarrow R=\frac{4032\times 100}{20160\times 1}=20$%