Multiple choice

A certain sum of money become Rs. 80000 in 3 years at compound interest and become Rs. 115200 in 5 years the rate of interest is -

  1. 12%

  2. 14%

  3. 10%

  4. 20%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let the amount be A and rate be r%. In compound interest, A(1+r/100)^3 = 80000 and A(1+r/100)^5 = 115200. Dividing: (1+r/100)^2 = 115200/80000 = 1.44, so 1+r/100 = √1.44 = 1.2, meaning r = 20%. Therefore, the rate is 20%, which matches option D.

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