If the amount is Rs. 600 and the Principal is Rs. 450, which is compounded yearly for 1 year, calculate the rate of interest.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 33.33%
Amount = Rs. 600
Principal = Rs. 450
Time = 1 year
For 1 year compounded yearly:
Amount = P(1 + R/100)
600 = 450(1 + R/100)
600/450 = 1 + R/100
4/3 = 1 + R/100
R/100 = 1/3
R = 100/3 = 33.33%
Therefore, the rate of interest is 33.33%.