Paper 1 · Mathematical Reasoning and Aptitude
A sum invested at compound interest becomes Rs 800 in 3 years and Rs 840 in 4 years. What is the rate of interest per annum?
A5% ✓ Correct
B6%
C7%
D8%
Correct answer: (A) 5% — The rate of interest is 5%, so that is the answer.
Explanation
★The rate of interest is 5%, so that is the answer.
★The amount grows from 800 to 840 during the fourth year.
★So the interest for that year is 40 on the amount of 800.
★The rate is 40 over 800.
★That equals 5%.
★So the rate of interest per annum is 5%.
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