Question

A sum of money invested at compound interest amounts to Rs.15,000 in one year and Rs.16,500 in two years. Then the rate of interest is

• A. 8\%
• B. 10\%
• C. 12\%
• D. 15\%

Hint:

For successive compound amounts, divide consecutive amounts to directly find the rate.

Answer 1

The Correct Option is B

Concept: In compound interest: \[ \frac{Amount_{2nd\ year}}{Amount_{1st\ year}} = 1 + \frac{R}{100} \] Explanation: Given: Amount after 1 year = 15000 Amount after 2 years = 16500 \[ \frac{16500}{15000} = 1.1 \] \[ 1 + \frac{R}{100} = 1.1 \Rightarrow R = 10\% \]