If the compound interest for the 3rd and 4th year on a certain principal is Rs 125 and Rs 135 respectively, what is the rate of interest (in %)?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 8
Rate of interest = [(135 - 125)/125] × 100
= [10/125] × 100 = 8%