Question

If a sum of money on compound interest become 27 times in 3 yrs, find rate

Answer 1

The compound interest accumulation factor is :

P(1 + i)ⁿ = Amount

P(1 + i)³ = 27P

(1 + i)³ = 27

1 + i = 27^1/3

1 + i = 3

i = 3 - 1 = 2

i = 2 × 100 = 200%

= 200%