Question

The sum of money at compound interest amounts to $Rs.10580$ in $2$ years and to $Rs.12167$ in $3$ years. The rate of interest per annum is

• A. $12\%$
• B. $14\%$
• C. $15\%$
• D. $16\frac{2}{3}$%

Answer 1

Answer: (C)

$15\%$

Amount in $2$ years =$Rs.10580$

Amount in $3$ years =$Rs.12167$

Principal of $3rd$ year=Amount of $2nd$ year=$Rs.10580$

So, Interest on $Rs.10580$ for $1$ year
$=Rs.(12167-10580)$
$=Rs.1587$
$\therefore Rate=\left(\frac{100\times Interest}{principal\times time}\right)\%=\left(\frac{100\times 1587}{10580\times 1}\right)\%=15\%$