1. 5%
  2. 8%
  3. 10%
  4. 20%
  5. 25%

Answer: E 

Explanation:

Given that, “x” dollars are invested under compound interest.

Difference between the interest in the II and II year = 1500 – 1200 = 300.

So, Rate of interest = (Difference/Previous year amount) * 100 = (300/1200) * 100 = 25%. 

(Because the difference in Interest amount is always the rate of interest on the previous term interest amount).

Hence the answer is E.

X

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