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    5. The compound interest on a sum of money for 3 years is 7,280. The sum amounts to 17,280 in 3 years.

    Question

    The compound interest on a sum of money for 3 years is

    7,280. The sum amounts to 17,280 in 3 years. What is the rate of interest compounded annually?
    A 8% Correct Answer Incorrect Answer
    B 10% Correct Answer Incorrect Answer
    C 12% Correct Answer Incorrect Answer
    D 15% Correct Answer Incorrect Answer
    E 20% Correct Answer Incorrect Answer

    Solution

    Let the principal be P We have P + {CI} = 17,280 and CI = 7,280 So, P = 10,000

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