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    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.
    A 12% Correct Answer Incorrect Answer
    B 14% Correct Answer Incorrect Answer
    C 15% Correct Answer Incorrect Answer
    D 20% Correct Answer Incorrect Answer

    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) Ɨ 100 = 12%

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