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.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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