Multiple choice

An amount of Rs x at compound interest at 20 % per year for 3 years becomes y What is y : x?

  1. 3:1

  2. 5:1

  3. 216:125

  4. can't be determined
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

y = x(1 + 20/100)^3 = x(1.2)^3 = x(6/5)^3 = x(216/125). Thus y/x = 216/125.

AI explanation

Using the compound interest formula, the amount y is calculated as x multiplied by the sum of 1 and the rate divided by 100, raised to the number of years. This gives y equal to x multiplied by 1.2 cubed, making y equal to 1.728x. Therefore, the ratio of y to x is 1.728 to 1, which simplifies exactly to 216 to 125.

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