Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Compound Interest

Question:

Rs.625 becomes Rs.1296 in four years at compound interest. The rate of interest per annum is:

Options:

20%

25%

15%

12%

Correct Answer:

20%

Explanation:

In 3 years : Principal : Amount = 625 : 1296 = (5)4 : (6)4

In 1 year : Principal : Amount = \(\sqrt[4]{5^4 }\) : \(\sqrt[4]{6^4 }\) = 5 : 6

Interest = 6 - 5 = 1R

Interest rate = \(\frac{1}{5}\) × 100% = 20%