If the compound interest for the 3rd and 4th year on a certain principal is Rs.39 and Rs.52 respectively, what is the rate of interest (in %)?
Answer & explanation
Correct answer: option 1
Compound interest for the 3rd year = 39
Compound interest for the 4th year = 52
R% = \(\frac{ (CI \; for \; 4th \; year) - (CI \; for \; 3rd \; year) }{(CI \; for \; 3rd \; year)}\)
R% = \(\frac{52 - 39}{39}\) × 100 = 33\(\frac{1}{3}\)%