Question

    A sum of money amounts to Rs 1024 in 4 years and Rs 1458

    in 7 years at a compound rate of interest. What is the rate of interest per annum?
    A 10%p.a Correct Answer Incorrect Answer
    B 25%p.a Correct Answer Incorrect Answer
    C 12.5%p.a Correct Answer Incorrect Answer
    D 20%p.a Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    For 3 years, taking cube rootsFor 3 years, taking cube roots = ∛512 = 8 = ∛729 = 9 Rate of interest = (difference of amount)/(first amount)× 100 = (9 - 8)/8 × 100 = 12.5% per annum

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