1.

A certain amount becomes Rs. 627200 in two years and Rs.702464 in three years. If the interest is compounded yearly what is the rate of interest ?

Answer»

12 %



The compound INTEREST in third year, which is (702464 . 627200 = 75264), is EQUAL to simple interest on RS. 627200 in ONE year.
∴ 75264 = 627200xrx1/100
∴ r = 75264/6272 = 12%



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