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. 1,600 and Rs. 1,792. Find the rate of interest per annum.Solution
ATQ,
Interest received in 2nd year = 1792 - 1600 = Rs. 192, which is equal to
interest earned on Rs. 1,600.
Rate of interest = (192/1600) Ă— 100 = 12%
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