A certain amount of money at compound interest grows to 66,550 in 3 years and 73,205 in 4 years. The rate percent per annum is:

Question

Ramesh bought a mobile from a local store. He paid 1/6 of the price via UPI and 1/3 of the price via cash. He agreed to pay the balance amount a year later. While paying back the balance amount, Ramesh paid 10% interest on the balance amount. If the interest paid was Rs. 6000, what was the original price of the mobile?

Answer 1

The compound interest formula is \( A = P \left( 1 + \frac{r}{100} \right)^t \).
An equation can be made using the amounts for the third and fourth years: \[ \frac{73,205}{66,550} = \left( 1 + \frac{r}{100} \right). \] Solving the equation yields \( r = 10\% \).

A certain amount of money at compound interest grows to 66,550 in 3 years and 73,205 in 4 years. The rate percent per annum is:

The Correct Option is A

Solution and Explanation

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