Interest Q.19

19If a sum of money invested at compound interest becomes Rs 800 in 3 years and Rs 840 in 4 years. Then what is the rate of interest per annum?

Option : A
Explanation : 4 years – 3 years = 1 year
Thus, we can say that Rs 800 becomes Rs 840 in 1 year.
∴ Interest = Rs 840 – Rs 800 = Rs 40
For 1 year time period, Simple Intesest = Compound Interest
$interest$

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