Question 72

A sum of money becomes 1.331 times in 3 years as compound interest. The rate of interest is

Solution

Let principal sum = Rs. $$x$$ and rate of interest = $$r\%$$

=> Amount after 3 years = Rs. $$1.331x$$

Amount under compound interest = $$P(1+\frac{R}{100})^T$$

=> $$x(1+\frac{r}{100})^3=1.331x$$

=> $$1+\frac{r}{100}=\sqrt[3]{1.331}$$

=> $$\frac{r}{100}=1.1-1=0.1$$

=> $$r=0.1\times100=10\%$$

=> Ans - (D)

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