A sum of money become 3.375 times of its

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Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Compound Interest

Question:

A sum of money become 3.375 times of itself in 3 years. Then find the rate of interest if compounded annually.

Options:

40%

30%

50%

25%

Correct Answer:

50%

Explanation:

Amount = P ( 1+ $\frac{R}{100}$)^t

3.375 P = P (1 + $\frac{R}{100}$)³

(1.5)³ = (1 + $\frac{R}{100}$)³

1.5 = 1 + $\frac{R}{100}$

0.5 = $\frac{R}{100}$ ⇒ R = 50%