24 vote
If the amount received at the end of 2nd and 3rd year at Compound Interest on a certain Principal is Rs 1,800, and Rs 1,926 respectively, what is the rate of interest?
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If the amount received at the end of 2nd and 3rd year at Compound Interest on a certain Principal is Rs 1,800, and Rs 1,926 respectively, what is the rate of interest?
1). 7,5%
2). 7%
3). 6%
4). 7%
2 answers
0 vote
This question was asked some where in previous year papers of ssc, and correct answer was option 2
11 vote
Amount received at the end of 2nd yr $= P(1+\frac{R}{100})^{2} = 1800$ -------(1)
Amount received at the end of 3rd yr $= P(1+\frac{R}{100})^{3} = 1926$ -------(2)
divide (2) with (1)
$\Rightarrow\frac{P(1+\frac{R}{100})^{3}}{P(1+\frac{R}{100})^{2}} = \frac{1926}{1800}$
$\Rightarrow 1+\frac{R}{100} = \frac{1926}{1800}$
$\Rightarrow \frac{R}{100} = \frac{1926}{1800}-1$
$\Rightarrow \frac{R}{100} = \frac{1926-1800}{1800} $
$\Rightarrow \frac{R}{100} = \frac{126}{1800} $
$\Rightarrow \frac{R}{100} = \frac{7}{100} $
$\Rightarrow R = 7%$
