Compound interest earned on a sum for the second and the third years are Rs.1200 and Rs.1440 respectively. Find the rate of interest?
Q1. Compound interest earned on a sum for the second and the third years are Rs.1200 and Rs.1440 respectively. Find the rate of interest?
Answer: 20% p.a.
Explanation: The ratio of successive years' compound interest equals (1 + r/100); 1440/1200 = 1.20, so the rate is 20% p.a.