Question

A sum of money put out at compound interest amount in two years to $Rs.2809$, and in three years to $Rs.2977.54$. Find the rate per cent

• A. $6$%
• B. $10$%
• C. $4$%
• D. $3$%

Answer 1

The correct option is A $6$%

Difference in amounts $=2977.54-2809=Rs.168.54$

$Rs.168.54$ is the interest on $Rs.2809$ in one year

$Rate=\frac{\text{Difference in amounts}}{\text{Initial amount}}\times 100$

$Rate=\frac{168.54}{2809}\times 100$

$Rate=6\%$ (The rate is per annum)