Multiple choice

A certain sum is interested at compound interest . The interest occurred in the first two years is Rs. $272$ and that in the First three years is Rs. $434$. Find the rate $\%$ ?

  1. $33.33$ $\%$
  2. $25$ $\%$
  3. $12.5$ $\%$
  4. $16.67$ $\%$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The interest earned in the third year is 434 - 272 = Rs. 162. Let the annual rate be r and compare the third-year interest with the total interest for the first two years. Solving the resulting equation gives r = 12.5%.

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