14.1k views
4 votes
The ratio of principal and the compound interest value for three years (compounded annually) is 216:127. The rate of interest is

A. 5%
B. 10%
C. 15%
D. 20%

1 Answer

3 votes

Final answer:

To find the rate of interest, we can use the formula for compound interest.

The correct answer is C. 15%

Step-by-step explanation:

The ratio of the principal and the compound interest value for three years (compounded annually) is 216:127. To find the rate of interest, we can use the formula for compound interest:

Future Value = Principal x (1 + interest rate)time

By substituting the values for the principal and compound interest given in the ratio, we can determine the rate of interest.

The correct answer is C. 15%

User Syohex
by
8.0k points