At what rate per annum will a sum of Rs. 15,800 become Rs. 21,488 after 18 months, at simple interest?
- A16%
- B12%
- C24%
- D18%
Solution & Step-by-step Explanation
Given:
Principal (P) = Rs. 15,800
Amount (A) = Rs. 21,488
Time (T) = 18 months =
12
18
=1.5 years=
2
3
years
First, calculate the Simple Interest (SI):
SI=A−P=21,488−15,800=Rs. 5,688
Using the simple interest formula SI=
100
P×R×T
:
5,688=
100×2
15,800×R×3
5,688=158×R×
2
3
5,688=79×3×R
5,688=237×R
R=
237
5,688
=24%
Principal (P) = Rs. 15,800
Amount (A) = Rs. 21,488
Time (T) = 18 months =
12
18
=1.5 years=
2
3
years
First, calculate the Simple Interest (SI):
SI=A−P=21,488−15,800=Rs. 5,688
Using the simple interest formula SI=
100
P×R×T
:
5,688=
100×2
15,800×R×3
5,688=158×R×
2
3
5,688=79×3×R
5,688=237×R
R=
237
5,688
=24%