What will be the Interest Rate? If

A sum of money becomes 5.5 times in 30 years at simple interest. Find the rate of interest?

  1. 10%
  2. 15%
  3. 12%
  4. 18%
Desire Adnan Default Asked on 4th August 2015 in Maths.
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1 Answer(s)

Answer: (2) 15 %
Explanation:-
Let the rate be R %   & principal is P
Given-
Time = 30 years,  Amount = 5.5 times of principal = 5.5 P
Simple Interest = 5.5 P – P  = 4.5 P

Formula-
Simple Interest = P x R x T/100
Where, P = principal , R = rate, & T = time.

Then,  4.5 P = P x R x 30/100
4.5 = 3 R/10
3 R = 4.5 x 10
3 R = 45
R = 45/3
R =  15 %
Then, the rate of interest is 15 %.
Hence, the answer is (2) 15 %.

Anurag Mishra Professor Answered on 4th August 2015.
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