Correct Answer - Option 3 : 12
Given:
A sum becomes Rs. 33868.8 after 2 years under compound interest.
The same amount at 10% compounded annually becomes 35937 after 3 years.
Formula Used:
In compound interest amount = P (1 + r /100)n [where principal be P and rate be r]
Calculation:
35937 = P (1 + 10/100)2 [Where principal be P]
⇒ P = 27000
⇒ 27000 (1 + r /100)2 = 33868.8 [Where rate be r]
⇒ R = 12%
∴ The initial rate is 12%
