A sum lent out at simple interest amounts to Rs 6076 in 1 year and Rs 7504 in 4 years. The sum and the rate of interest p.a. are respectively ?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 ie Rs.5600 and 8.5%.
1st yr → 6076 → +(1428/3) = 476 (int. for 1st yr) → 7504
A - I = P
6076 - 476 = P
P = 5600
Rate = (476/5600) × 100 = 476/56 = 8.5%