SBI lent ₹ 1331 lakh to the TATA group at compound interest and got ₹1728 lakh after 3 yr. What is the rate of interest charged, if compounded annually?
Correct Answer: 9.09%
Explanation:
According to the question,
1728 = 1331(1 + R/100)3
1728/1331 = (1 + R/100)3
⇒ (12/11)3 = (1 + R/100)3
⇒ 1 + R/100 = 12/11
⇒ R/100 = (12/11) - 1 = 1/11
∴ R = 100/11= 9.09%
