Sign in
Please select an account to continue using cracku.in
↓ →
A certain sum invested on compound interest grows to ₹8,000 and ₹27,000 in three and six years, respectively when the interest is compounded annually. What is the percentage rate of interest?
A = $$P\left(1+\frac{r}{100}\right)^n$$
27000 = $$P\left(1+\frac{r}{100}\right)^6$$ ----------------I
8000 = $$P\left(1+\frac{r}{100}\right)^3$$ ------------II
Dividing I by II we get,
$$\frac{27}{8}=P\left(1+\frac{r}{100}\right)^3$$
$$\frac{3}{2}=1+\frac{r}{100}$$
$$\frac{r}{100}=\frac{1}{2}$$
$$r=50 %$$
Was this solution helpful?
Create a FREE account and get:
Start your IIM journey with the right preparation and crack CAT 2026.
Educational materials for CAT preparation
Ask our AI anything
AI can make mistakes. Please verify important information.
AI can make mistakes. Please verify important information.
91- 6303239042
