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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. 3,000 and Rs. 3,420. Find the rate of interest per annum.
    A 25% 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 = 3420 - 3000 = Rs. 420, which is equal to

    interest earned on Rs. 3,000.

    Rate of interest = (420/3000) × 100 = 14%

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