A sum of money is invested at compound interest, which is compounded annually. The sum grows to ₹1000 after three years, and ₹1100 after four years. What is the rate of interest per annum?
Answer & explanation
Correct answer: option 2
Difference in compound interest of 3 rd and 4th year = 1100 - 1000
= Rs. 100
Rate of interest = \(\frac{100}{1000}\) × 100%
= 10%