Multiple choice

At what rate percent compound interest per annum will Rs 640 amount to Rs 795.07 in 3 years?

  1. 7.5%

  2. 4.5%

  3. 7.0%

  4. 8.0%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Use compound interest formula: A = P(1 + r/100)^t. Here 795.07 = 640(1 + r/100)^3. Solving: (1 + r/100)^3 = 795.07/640 = 1.2423. Taking cube root: 1 + r/100 = 1.075. Therefore r = 7.5%. Verify: 640 × 1.075^3 = 640 × 1.2423 ≈ 795.07. Options C and D are close but don't yield the exact amount.

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