At what rate percent per annum will a sum of Rs. 15,625 amount to Rs. 21,952 in three years, if the interest is compounded annually?

Answer: Option A

Solution

Answer: Option A

Solution:

$$\begin{array}{rl}& 15625:21952\to \text{in three years}\\ & \text{root}3\text{of}15625:\text{root}3\text{of}21952\to \text{in one year}\end{array}$$

$$\text{Rate}=\frac{3}{25}\times 100=12\%$$