An amount of money at compound interest gives 3840 in 5 years and Rs. 3936 in 6 years. Find rate of interest.
Answer & explanation
Correct answer: option 2
Interest in one year = 3936 - 3840 = 96
Rate of interest = \(\frac{96}{3840}\) × 100 % = 0.025 × 100 % = 2.5%