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What is the interest rate per annum, if a sum of money invested at compound interest amount to Rs. 2400 in 3 years and in 4 years to Rs. 2,520?

Correct Answer: 5%

Explanation:

Let 'R%' be the rate of interest


From the given data,


2520 2400   =   1   +   R 100 4 1   +   R 100 3 1   +   R 100   =   63 60 R   =   5


 


Hence, the rate of interest R = 5% per annum.


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