If the amount received at the end of 2nd and 3rd year at compound Interest on a certain Principal is Rs. 9,600 and Rs. 10,272 respectively, what is the rate of interest (in %)?

This question was previously asked in

SSC CGL Tier 2 Quant Previous Paper 8 (Held On: 18 Feb 2018)

- 7
- 8
- 6
- 5

Option 1 : 7

Free

RRB ALP 2018 Full Test (Stage II - Part A)

118879

100 Questions
100 Marks
90 Mins

From the formula: Amount = P.( 1 + r/100)^{n} and

Compound Interest = A - P

We are given that -

9600 = P.(1 + r/100)^{2} ---- (1)

10272 = P.(1 + r/100)^{3} ---- (2)

Dividing Equation (2) by Equation (1), we get

⇒ 10272/9600 = 1 + r/100

⇒ 1.07 = 1 + r/100

⇒ r = 7%

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