Multiple choice

A sum of money on compound interest amount to Rs. 9680 in 2 years and to Rs. 10648 in 3 years. What is the rate of interest per annum?

  1. 6%

  2. 8%

  3. 10%

  4. 12%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In compound interest, the amount grows by the same factor each year. 9680 × (1+r/100) = 10648, so 1+r/100 = 10648/9680 = 1.1. This gives r/100 = 0.1, so r = 10%.

Keep practicing — related questions