A man invested ₹25,400 on simple interest for 9 years to obtain a total amount of ₹67,790 at a certain annual rate of interest. What was the rate of interest (rounded off to 2 decimal places) to obtain the above amount?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 18.54%
A = P + S.I.
S.I. = PRT/100
where, P = Principal, R = Rate of interest, T = time, S.I. = simple interest
S.I. = 67790 - 25400 = ₹42390
Now, 25400 × R × 9/100 = 42390
R = 42390 × 100/(25400 × 9) = 18.54%