A certain sum of money amounts to Rs.8925 in two years and to Rs.10224 in 3 whole 1/2 years, both at simple interest. The rate of interest per annum is?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 12%
| Understanding | Application |
| Tricks |
SI2(2 year) = 8925 SI3(7/2 years) = 10224 3/2 years = 1299 |
| Now |
Total years till SI2 = 2 years Since, 3/2 = 1299 So 2 years = 1299/3 × 2 × 2 = 433 × 4 = 1732 So, Here total interest on 2 years = 8925 - 1732 = 7193 = P |
| Hence |
1732 = 7193 × R × 2/100 ⇒ R = (1732 × 100)/7193 × 2 ⇒ R = 173200/14386 ⇒ R = 12.03 ⇒ R = 12% |