Mathematics
A certain sum of money amounts to ₹ 5000 at the end of 5th year and to ₹ 6000 at the end of 6th year. The rate of interest is :
120%
20%
1.2%
12%
Compound Interest
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Answer
Difference between amounts of two successive years = ₹ 6000 - ₹ 5000 = ₹ 1000
∴ ₹ 1000 is the interest of one year on ₹ 5000.
By formula,
Rate of interest = = 20%.
Hence, Option 2 is the correct option.
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