₹1,000 becomes ₹1,331 in 3 years at compound interest compounded annually. The annual rate is:

Problem Statement

One thousand times one plus r whole cube equals one thousand three hundred thirty one. So one plus r equals one point one. Rate equals ten percent.

SolutionRead Only

(1+R/100)^3 = 1331/1000 = 1.331 ⇒ 1+R/100 = 1.10 ⇒ R=10%

This question appears in the following practice sets: