Compound Interest Practice Test 3

Question : 5 of 40

Marks: +1, -0

A sum of money becomes 1.331 times in 3 years as compound interest. The rate of simple interest per annum was:

Solution:

Let the sum of money = Rs 100
Amount = 1.331 × 100 = Rs 133.1

A=P(1+R/100)^t

133.1=100(1+R/100)^3

1331/1000=(1+R/100)^3

(11/10)^3=(1+R/100)^3

1.1=1+R/100

R=0.1×100=10%

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