Multiple choice

Kamal invested Rs. 5,500 at compound interest at a rate of R% per annum for 3 years. If the interest earned by Kamal after 3 years is equal to 33.1% of the principal amount, find the value of R.

  1. 10

  2. 15

  3. 7.2

  4. 11.3
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A Correct answer
Explanation

For 3 years, the compound interest formula is P * ((1 + R/100)^3 - 1) = 0.331P. This simplifies to (1 + R/100)^3 = 1.331. Since 1.1^3 = 1.331, R/100 = 0.1, so R = 10.

AI explanation

Since the compound interest is 33.1% of the principal, the total amount after 3 years is 133.1% of the principal, meaning the amount ratio is 1.331. Taking the cube root of 1.331 gives 1.1, which means the amount increases by 10% each year, so R is 10.

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