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SSC CHSL 2023 PYQ — Question 59

SSC CHSL 2023 - 03 Aug 2023 - Shift 4 • Quantitative Aptitude • Q59

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A financial institution claims that it returns three times the principal in 25 years on a certain rate of simple interest per annum. What is the rate of simple interest?

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Correct answer: A

Explanation

The correct answer is option 1 i.e. 8%.

Let's assume the principal P = x

Then Amount A = 3x

Time t = 25 years

Rate of interest = r%

Simple interest = Amount  - Principal

⇒ Simple interest = 3x - x = 2x

Simple interest = P×r×t100\frac{P\times r\times t}{100}

⇒ 2x = x×r×25100\frac{x\times r\times 25}{100}

⇒ 8x = r.x

r = 8%