What will be the rate of Interest per annum

The Sum of money amounts to Rs.9800 after 5 years and Rs.12005 after 8 years at the same rate of simple interest. What is the rate of interest per annum?

  1. 5%
  2. 6%
  3. 10%
  4. 12%
Monis Rasool Professor Asked on 24th May 2015 in Maths.
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1 Answer(s)

Answer: 7.5%
Explanation:

Sum of money amount after  5 years = Rs. 9800
and amount after      8 years = 12005

Thus, Simple interest of 3 years = 12005 – 9800 = Rs. 2205
then, time = 3 years

Formula – Simple Interest = R x T x P/100
where, R = rate, T = Time, P = Principal

SI = Rs. 2205, Time = 3 years, P = Rs.9800 and rate =?
2205 = 9800 x 3 x R/100
R = 2205 x 100/9800 x 3
R = 7.5%

Anurag Mishra Professor Answered on 24th May 2015.
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