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:

Updated On: Dec 31, 2024
  • 0.1
  • 0.09
  • 0.05
  • 0.11
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The Correct Option is A

Solution and Explanation

The compound interest formula is A=P(1+r100)t A = P \left( 1 + \frac{r}{100} \right)^t .
 Using the amounts for the third and fourth years, we can set up the equation 73,20566,550=(1+r100). \frac{73,205}{66,550} = \left( 1 + \frac{r}{100} \right). Solving this gives r=10% r = 10\% .

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