SSC GD 2023 PYQ — Question 53

The correct answer is Option 2 i.e. $7\frac{1}{7}$%.

We know that,

A = P(1 + R/100)^T

here, A = Amount, P = Principal, R = Rate, and T = Time

Amount = Interest + Principal

⇒ 4900 + 725 = 4900(1 + R/100)²

⇒ 5625 = 4900(1 + R/100)²

⇒ 5625/4900 = (1 + R/100)²

⇒ 225/196 = (1 + R/100)²

⇒ 15/14 = (1 + R/100)

⇒ R/100 = 15/14 - 1

⇒ R/100 = (15 - 14)/14

⇒ R/100 = 1/14

⇒ R = 100/14

⇒ R = $7\frac{1}{7}$%