On lending a certain sum of money on Compound Interest one gets Rs.9050 in 2 years and Rs.9500 in 3 years. What is the rate of interest?
Answer & explanation
Correct answer: option 3
Interest received in one year (2nd to 3rd) = 9500 - 9050 = 450
Rate of Interest = \(\frac{450}{9050}\) × 100 = 4.97% = 5% (approx)