Question

A sum of money invested at compound interest amounts to Rs. 800 in 3 years and to Rs. 840 in 4 years. The rate of interest per annum is

A) 6% B) 4% C) 5% D) 7%

Answer 1

Answer:

5%

Step-by-step explanation:

$\tt \: Simple \: Interest \: for \: 1yr = 840 - 800 = 40$

$\tt \: Rate \: of \: interest \: will \: simply \: be = \frac{40 \times 100}{800 \times 1} = 5\%$