Multiple choice

Three years ago, Sunil borrowed Rs.15,000 from a credit society. Today, he repaid the total amount of Rs. 19,965 inclusive of interest. What was the rate of compound interest?

  1. 8%

  2. 12%

  3. 10%

  4. 9%

  5. 5%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Using the compound interest formula A = P(1 + r/100)^n, 19965 = 15000(1 + r/100)^3. Dividing by 15000 gives 1.331 = (1 + r/100)^3. Taking the cube root of 1.331 gives 1.1, so r = 10%.

AI explanation

Using the compound interest formula, Amount = Principal x (1 + R/100)^T, we substitute the values to get 19965 = 15000 x (1 + R/100)^3. Dividing 19965 by 1500 gives 1.331, so (1 + R/100)^3 equals 1.331. Taking the cube root of both sides gives 1 + R/100 equals 1.1, meaning R equals 10 percent.

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