1.

At what rate per cent per annum will a sum of Rs. 15,625 amount to Rs. 21,952 in three years, if the interest is compounded annually?1. 12%2. 10%3. 9%4. 8%

Answer» Correct Answer - Option 1 : 12%

Given:

Principal (P) = Rs. 15625

Time (T) = 3 years

Amount (A) = Rs. 21,952

Concept used:

Amount = P(1 + R/100)T

Calculation:

Let the rate of interest per annum be R.

21952 = 15625(1 + R/100)3

⇒ 21952/15625 = (1 + R/100)3

⇒ ∛(21952/15625) = 1 + R/100

⇒ 28/25 = 1 + R/100

⇒ 28/25 – 1 = R/100

⇒ (28 – 25)/25 = R/100

⇒ 3/25 = R/100

⇒ R = (3/25) × 100

⇒ R = 3 × 4

⇒ R = 12%

∴ The rate per cent per annum is 12%.



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