At what rate of interest, does a sum of money becomes 27 times itself in three years compounded annually, what is rate of interest?
a. 100%
b. 250%
c. 200%
d. 150%
e. 300%
Sol:
Let the principal amount be ‘P’ and rate of
compound interest be ‘R’ then,
27P = P * (1 + R/100)3
27 = (1 + R/100)3
3 = 1 + R/100
R = 200%
