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If the amount received at the end of the 2nd and 3rd year at Compound Interest on a certain Principal is and respectively, what is the rate of interest?

  1. A
    6 percent
  2. B
    3 percent
  3. C
    12 percent
  4. D
    10 percent

Solution & Step-by-step Explanation

In compound interest, the amount at the end of the 2nd year acts as the principal for the 3rd year.Amount at the end of 2nd year () = Amount at the end of 3rd year () = The interest earned in the 3rd year is:

The rate of interest () can be computed as:


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If the amount received at the end of the 2nd and 3rd year at Compound Interest on a certain Principal is and respectively, what is the rate of interest?
A
6 percent
B
3 percent
C
12 percent
D
10 percent

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