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Mathematics

₹ 300 and ₹ 360 are the compound interest for two consecutive years. The rate of interest is :

  1. 1.2%

  2. 12%

  3. 120%

  4. 20%

Compound Interest

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Answer

Difference between C.I. of two successive years = ₹ 360 - ₹ 300 = ₹ 60

∴ ₹ 60 is the interest of one year on ₹ 300.

By formula,

Rate of interest = 100×IP×T=100×60300×1\dfrac{100 \times I}{P \times T} = \dfrac{100 \times 60}{300 \times 1} = 20%.

Hence, Option 4 is the correct option.

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