Multiple choice

Cherlin invested a sum of money at compound interest. It amounted to Rs. 2420 in two years and Rs. 2662 in 3 years. Find the rate percentage.

  1. 5%

  2. 8%

  3. 10%

  4. 12%

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The amount grows from 2420 to 2662 in one year. The interest earned is 2662 - 2420 = 242. The rate is (242 / 2420) * 100 = 10%.

AI explanation

The compound interest earned during the third year is the difference between the amounts at the end of three years and two years, which is 2662 - 2420 = 242. The rate of interest is found by dividing this third year interest by the amount at the end of the second year, and then multiplying by 100. Calculating (242 / 2420) * 100 gives the rate percentage as 10%.

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