SBI lent ₹ 1331 lakh to the TATA group at compound

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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?

1. 11%
2. 9.09%
3. 12%
4. 8.33%

Correct Option: B

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%