Multiple choice

If a sum of money Rs. 50,000 amounts to Rs.1,68,750 in 3 years at compound interest. Find the rate of interest.

  1. 35%

  2. 45%

  3. 50%

  4. 60%

  5. 10%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A = P(1 + r/100)^n. 168750 = 50000(1 + r/100)^3. 3.375 = (1 + r/100)^3. Taking the cube root, 1.5 = 1 + r/100, so r/100 = 0.5, r = 50%.

AI explanation

Using the compound interest formula A = P(1 + R/100)^T, we substitute the given values to get 168750 = 50000(1 + R/100)^3. Dividing both sides by 50000 gives (1 + R/100)^3 = 3.375. Taking the cube root of both sides results in 1 + R/100 = 1.5, which means R/100 = 0.5. Solving this yields a rate of interest of 50%.

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