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.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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