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Ravi invested at compound interest amounts to Rs 600 in 2nd year and 642 in 3 years. what rate of interest per annum he recevied ?

Solution

✅ Correct Option: 3

Under compound interest, the amount at the end of the third year is the second year's amount grown by one year's interest.

Interest for that year =642−600=42= 642 - 600 = 42 on a principal of 600.

Rate =42600×100=7%= \frac{42}{600} \times 100 = 7\% per annum.

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