A sum of money becomes \(\frac{768}{243}\) times of itself in 4 years. Find the rate of interest if compounded annually.
Answer & explanation
Correct answer: option 2
A = P (1+ \(\frac{R}{100}\))4
\(\frac{768}{243}\) = (1+ \(\frac{R}{100}\))4
\(\frac{256}{81}\) = (1+ \(\frac{R}{100}\))4
(\(\frac{4}{3}\))4 = (1+ \(\frac{R}{100}\))4
\(\frac{1}{3}\) = \(\frac{R}{100}\)
R = \(\frac{100}{3}\) = 33.33 %