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Mathematics

For two consecutive years, a sum lent out at C.I. earns ₹ 600 and ₹ 690 respectively. The rate of C.I. is :

  1. 12%

  2. 18%

  3. 15%

  4. 5%

Compound Interest

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Answer

Difference between C.I. of two successive years = ₹ 690 - ₹ 600 = ₹ 90

∴ ₹ 90 is the interest of one year on ₹ 600.

By formula,

Rate of interest = 100×IP×T=100×90600×1\dfrac{100 \times I}{P \times T} = \dfrac{100 \times 90}{600 \times 1} = 15%.

Hence, Option 3 is the correct option.

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