A certain sum amounts to Rs. 1,600 in two years and to Rs. 2,000 in three years at compound interest when compounded annually. Find the rate of interest.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 25%.
Amount after 2 years = 1600
Amount after 3 years = 2000
Interest in 3rd year = 2000 - 1600 = 400
Rate of interest = (400/1600) × 100 = 25%