A certain sum becomes ₹26,980 in 3years and ₹40,280 in 8 years at simple interest. Find the rate of interest.
Show answer & explanation
Correct answer: A
Explanation
The Correct answer is option 1 i.e. 14%
Given that
Amount = ₹26,980, In 3 years
Amount = ₹40,280, in 8 years at simple interest.
Formula used
S.I. = (Principal × Rate × Time)/100
According to the question
In (8 - 3) years, i.e. In 5 years, Simple interest = 40280 - 26980 = ₹13300
In 3 year, interest = (13300/5) × 3 = ₹ 7980
Now,
Principal = Amount - S.I. = 26980 - 7980 = ₹ 19000
Calculation
S.I. = (Principal × Rate × Time)/100
⇒ 7980 = (19000 × Rate × 3)/100
Rate = 14%