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 :

Question

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 :

Answer 1

A. 5%
B. 8%
C. 12%
D. 15%

S.I. for 3 years = Rs. (12005 – 9800) = Rs. 2205. S.I. for 5 years = Rs. ( ²²⁰⁵/₃ ^{X 5} ) = Rs. 3675. So Principal = Rs. (9800 – 3675) = Rs. 6125. Hence, rate = ( ^{100 X 3675}/_{6125 X 5} ^{X 5} )% = 12%.

Correct Answer: 12% ✔

Last Updated: February 07, 2020