Question

Q. Wiggins earns an interest of Rs. 1469 for the third year and Rs. 1300 for the second year of investment on the invested sum. Find the rate of interest if it is lent at compound interest.

• A. 11%
• B. 17%
• C. 12.5%
• D. 13%

Answer 1

The correct option is D 13%

Interest earned in 3rd year = Rs. 1469
Interest earned in 2nd year = Rs. 1300
i.e., in 3rd year, Andrews gets additional interest of (Rs. 1469 - Rs. 1300) = Rs.169
This means, Rs.169 is the interest obtained for Rs.1300 for 1 year
$\Rightarrow R=169\times \frac{100}{1300}=13\%$