Question

Find the rate of interest if a sum of money becomes 8 times after 3 years when interest is being compounded annually.

Let P be the sum. Amount A 8P t3years Rate of interest R As we know that, AP1R1003 8PP1 R1003 813 1R100 R100 2-1 R100

A 100%

B 50%

C 25%

D 120%

Detailed Solution