The amount at the end of the 2nd and 3rd years on a certain principal at CI is ₹4,232 and ₹4,655.20 respectively. Find the rate of interest per annum.
Show answer & explanation
Correct answer: D
Explanation
Given:
Amount at the end of the second year = ₹4232
Amount at the end of the third year = ₹4655.20
By the formula:
A₃ = A₂(1 + R/100)
4655.20 = 4232(1 + R/100)
1 + R/100 = 4655.20 / 4232
= 1.10
R/100 = 0.10
R = 10% per annum