A sum of Rs. 8,000 amounts to Rs. 9,261 in 3 years at compound interest. What is the rate of interest per annum?

Topic: Interest
Subtopic: Compound Interest

A4%

B5%

C6%

D8%

Explanation

Amount / Principal = (1 + R/100)^3 => 9261 / 8000 = (21/20)^3 = (1 + R/100)^3 => 1 + R/100 = 21/20 = 1.05 => R = 5%.

Exam Relevance

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