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SSC MTS 2022 PYQ — Question 51

SSC MTS - 21 July 2022 - Shift 3 • Quantitative Aptitude • Q51

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A sum of money amounts to 5 times of itself in 20 years, when invested at a certain rate of simple interest per annum. What is the rate of simple interest per annum that is on offer?

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Correct answer: C

Explanation

The correct answer is option 3 i.e. 20%.

Given:

Let the sum of money = P

Rate of interest = R%

Time (T) = 20 years

Amount = 5P

Solution:

Amount = Principal(P) + Simple Interest(SI)

Therefore,

Simple Interest(SI) = Amount - Principal 

Simple Interest(SI) = 5P - P

Simple Intererst(SI) = 4P 

Now,

⇒ SI=PRT100SI = \frac{PRT}{100}

⇒ 4P=PR×201004P = \frac{PR\times 20}{100}

⇒ R = 20%.