Compound Interest Practice Test 6

Question : 6 of 9

Marks: +1, -0

An amount of money at compound interest grows up to Rs 3,840 in 4 years and up to Rs 3,936 in 5 years. Find the rate of interest.

2.5%
2%
3.5%
2.05%

Validate

Solution:

Amount of money at compound interest for 4 years = Rs 3,840
Amount of money at compound interest for 5 years = Rs 3,936
Rate of interest = R
Time = 1 year

A=P(1+R/100)^t

⇒3936=3840(1+R/100)^1

R=96×100/3840

R = 2.5%

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