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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. 2,500 and Rs. 2,875. Find the rate of interest per annum.
    A 25% Correct Answer Incorrect Answer
    B 18% Correct Answer Incorrect Answer
    C 15% Correct Answer Incorrect Answer
    D 20% Correct Answer Incorrect Answer

    Solution

    ATQ,

    Interest received in 2nd year = 2875 - 2500 = Rs. 375, which is equal to
    interest earned on Rs. 2,500.

    Rate of interest = (375/2500) × 100 = 15%

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