A sum of money put at compound interest amounts in 2 years to Rs. 672 and in 3 years Rs. 714. The rate of interest per annum is = ?

Solution (By Examveda Team)

$$\eqalign{ & {\text{S}}{\text{.I}}{\text{. on Rs}}{\text{. 672 for 1 year}} \cr & {\text{ = Rs}}{\text{. }}\left( {714 - 672} \right) \cr & {\text{ = Rs}}{\text{. 42}} \cr & \therefore {\text{Rate = }}\left( {\frac{{100 \times 42}}{{672 \times 1}}} \right){\text{% }} \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,{\text{ = 6}}{\text{.25% }} \cr} $$