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Simple Interest
A sum of money amounts to Rs. 9800 after 5 years and Rs. 12005 after 8 years at the same rate of simple interest. The rate of interest per annum is:
5%
8%
12%
15%
Show Answer
Correct Answer:
12%
Explanation:
S.I. for 3 years = Rs. (12005 - 9800) = Rs. 2205.
S.I. for 5 years = Rs.
❨
2205
x 5
❩
= Rs. 3675
3
∴ Principal = Rs. (9800 - 3675) = Rs. 6125.
Hence, rate =
❨
100 x 3675
❩%
= 12%
6125 x 5
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