Question

A sum is invested at compound interest payable annually. The interest including principal in two successive years was Rs 225 and Rs 236.25 respectively. The rate of interest was

Answer 1

A sum is invested at compound interest payable annually. The interest including principal in two successive years was Rs 225 and Rs 236.25 respectively. The rate of interest was 5%

ANS : 5%

Answer 2

Principal of first year=225rs

For 2nd year with interest= 236.25rs

Interest= 236.25-225=11.25 rs

I= PRT/100= 225*R*1/100=11.25

R= 100*11.25/225*1*100= 5% answer