1)

A sum of money on compound interest amounts to Rs. 10,648 in 3 years and Rs. 9680 in 2 years. The rate of interest per annum is


A) 5%

B) 10%

C) 15%

D) 20%

E) 25%

Answer:

Option B

Explanation:

Let  Sum be P and rate be R% per annum.

Then P(1+R100)2 =9680    ---------------------- (1)

P(1+R100)3 =10648   -----------------------------(2)

Divide equ. (2) by (1)

1+R100 =106489680

R100 =110 = 10%