A certain sum invested at simple interest amounts to Rs. 10,072 in 3
2
1
years and to Rs. 11,552 in 6 years at the same rate per annum. The rate of interest p.a. is:
- A7.5%
- B8.5%
- C7.8%
- D7.4%
Solution & Step-by-step Explanation
Let the principal be P and the annual simple interest be I.
Interest for 6−3.5=2.5 years is:
Interest for 2.5 years=11,552−10,072=Rs. 1,480
Interest for 1 year:
I=
2.5
1480
=Rs. 592
Interest for 6 years:
Interest for 6 years=592×6=Rs. 3,552
Calculate Principal P:
P=Amount after 6 years−Interest for 6 years
P=11,552−3,552=Rs. 8,000
Calculate Rate of Interest (R):
R=
P
I×100
=
8000
592×100
=
80
592
=7.4%
Interest for 6−3.5=2.5 years is:
Interest for 2.5 years=11,552−10,072=Rs. 1,480
Interest for 1 year:
I=
2.5
1480
=Rs. 592
Interest for 6 years:
Interest for 6 years=592×6=Rs. 3,552
Calculate Principal P:
P=Amount after 6 years−Interest for 6 years
P=11,552−3,552=Rs. 8,000
Calculate Rate of Interest (R):
R=
P
I×100
=
8000
592×100
=
80
592
=7.4%