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ExamsSSC CGL (Prelims)General

If the amount at the end of the 4th year and 5th year on a certain principal at compound interest is ₹24,000 and ₹26,400 respectively, find the rate of interest per annum.

  1. 8%
  2. 9%
  3. 10%
  4. 11%

Correct answer: 10%

Solution

In compound interest, successive yearly amounts differ by a constant factor of (1+r). The ratio 26400/24000 = 1.1, so the rate is 10% per annum.

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