Question
A sum is invested at a certain rate (p.a.) of compound
interest (compounded annually). The interest earned after 1st year and after 2 years of investment is Rs. 5,000 and Rs. 5,750. Find the rate of interest per annum.Solution
ATQ,
Interest received in 2nd year = 5750 - 5000 = Rs. 750, which is equal to
interest earned on Rs. 5,000.
Rate of interest = (750/5000) × 100 = 15%
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