If the amount at the end of the 4th year and 5th year on a certain principal at compound interest is ₹24,000 and ₹26,400 respectively, find the rate of interest per annum.

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Accepted Answer

1. The yearly growth factor = amount at 5th year ÷ amount at 4th year.

2. Compute: $\dfrac{26400}{24000}=1.1$.

3. So $1+r=1.1$, hence $r=0.1=10\%$.

4. Therefore the correct choice is **(c)**.

FINAL_ANSWER: c

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Answer

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