Question

Rs. 25,000 becomes Rs. 33,275 in 3 years at a certain rate of compound interest per annum. Find the rate.

• A. 10%
• B. 20%
• C. 30%
• D. 8%

Answer 1

The correct option is A

10%

P=Rs. 25,000

A = Rs. 33,275

Time = n = 3 years

$A=P{(1+\left(\frac{R}{100}\right))}^{n}Rs.33,275=Rs.25,000{(1+\left(\frac{R}{100}\right))}^3\frac{Rs.33,275}{Rs.25,000}={(1+\left(\frac{R}{100}\right))}^3{(1+\left(\frac{R}{100}\right))}^3={\left(\frac{11}{10}\right)}^{3}1+\left(\frac{R}{100}\right)=\frac{11}{10}\left(\frac{R}{100}\right)=\frac{11}{10}-1R=10$

So, rate of interest is 10$\%$