A sum of money invested at simple interest becomes 17/10 of itself in 2 years and 6 months. What is the rate of interest per annum?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 28 percent
Formula used:
SI = PRT/100 ---- (1)
Where, P = principal, R = rate and T = time
Calculations:
If Principal is 10x
Amount = 17x
SI = A - P = 17x - 10x = 7x
Using equation (1), we get
⇒ 7x = (10x × 5/2 × R)/100
⇒ 7 = R/4
⇒ R = 28%