An amount invested on simple interest at 'R%' p.a. amounts to Rs. 9,504 and Rs. 12,384 in 4 years and 9 years, respectively. Find the value of 'R'.
Show answer & explanation
Correct answer: D
Explanation
Given:
Amount after 4 years = ₹9504
Amount after 9 years = ₹12384
Formula:
Simple interest is the same every year.
Interest for 5 years = 12384 − 9504 = 2880
Interest for 1 year = 2880 / 5 = 576
Interest for 4 years = 4 × 576 = 2304
Principal = 9504 − 2304 = 7200
576 = (7200 × R) / 100
R = (576 × 100) / 7200
R = 8%