Question

A certain amount of money at compound interest grows to 66,550 in 3 years and 73,205 in 4 years. The rate percent per annum is:

• A. 0.1
• B. 0.09
• C. 0.05
• D. 0.11

Answer 1

The Correct Option is A

The compound interest formula is $A = P \left( 1 + \frac{r}{100} \right)^t$.
 Using the amounts for the third and fourth years, we can set up the equation $$\frac{73,205}{66,550} = \left( 1 + \frac{r}{100} \right).$$ Solving this gives $r = 10\%$.