Multiple choice

An amount of Rs x at compound interest at 20% pa for 3 yr becomes y. What is y : x?

  1. 3 : 1

  2. 36 : 25

  3. 216 : 125

  4. 125 : 216
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Using the compound interest formula A = P(1 + r/100)^n, we have y = x(1 + 20/100)^3 = x(6/5)^3 = x(216/125). Therefore y : x = 216 : 125. The ratio represents the growth factor over the principal amount.

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