Question
A sum of money invested at a certain rate of compound
interest per annum amounts to ₹86,800 in 2 years and to ₹95,4800 in 3 years. Find the rate of compound interest per annum.Solution
Rate of interest per annum = {Amount of (n + 1) year/Amount of (n) year} × 100 - 100 = (95480/8680) × 100 - 100 = (11/10) × 100 - 100 = 10 The rate of interest per annum is 10%.
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