Multiple choice

In 3 years, Rs. 3000 amounts to Rs. 3993 at x% compound interest, compounded annually. The value of x is

  1. 10%

  2. 8%

  3. 5%

  4. 6%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

3993 = 3000(1 + x/100)^3. 1.331 = (1 + x/100)^3. Taking the cube root, 1.1 = 1 + x/100. x/100 = 0.1, so x = 10%.

AI explanation

The compound interest formula is A = P(1 + R/100)^n, so 3993 = 3000(1 + x/100)^3. Dividing by 3000 gives 1.331 = (1 + x/100)^3, and taking the cube root of both sides results in 1.1 = 1 + x/100. Solving for x gives x = 10.

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