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?
- A6 percent
- B3 percent
- C12 percent
- D10 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:
The rate of interest () can be computed as: