A certain sum of money amounts to Rs. 1,250 in 4 years and to Rs. 1,520 in years at a certain rate of simple interest. Find the rate of interest per annum (correct to two places of decimal).
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 33.96%.
Interest for 5.5 years = 1520 − 1250 = Rs. 270
Time difference = 5.5 − 4 = 1.5 years
Simple Interest for 1.5 years = Rs. 270
So, SI for 1 year = 270 / 1.5 = Rs. 180
Principal = 1250 − (4 × 180) = 1250 − 720 = Rs. 530
Rate = (180 × 100) / (530 × 1) = 33.96%