Multiple choice

At what rate percent per annum compound interest, will Rs. 10,000 amount to Rs. 13,310 in three years?

  1. 8%

  2. 10%

  3. 12%

  4. 15%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Series A: 3*2+1=7, 7*2+1=15, 15*2+1=31, 31*2+1=63, 63*2+1=127 (Follows). Series B: 5*2+1=11 (not 13). Series C: 1*2+1=3, 3*2+1=7, 7*2+1=15, 15*2+1=31, 31*2+1=63 (Follows). Only B fails.

AI explanation

Using the compound interest formula, we have 13310 = 10000(1 + R/100)^3, which simplifies to (1 + R/100)^3 = 1.331. Taking the cube root of both sides gives 1 + R/100 = 1.1, so R/100 = 0.1. The rate of interest is 10%.

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