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A sum of money compounded annually amounts to Rs.1375 in 5 years and Rs.1980 in 7 years. Find the annual rate of interest

 

A sum of money compounded annually amounts to Rs.1375 in 5 years and Rs.1980 in 7 years. Find the annual rate of interest

 

  • Option 1)

     

    12%           

     

  • Option 2)

     

     20%                    

     

  • Option 3)

     

    11%

     

  • Option 4)

     

     10%

     

  • Option 5)

     

    15%                        

     

Answers (1)
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Amount of 5 years = 1375 Rs.

Amount of  7 years = 1980 Rs.

Difference = 1980 -1375 = 605

ThenCI = P \left [ 1+\frac{r}{100} \right ]^{2}

605 = 1375 \left [ 1 + \frac{r}{100} \right ]^{2}

R= 20 %

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