Question
A sum of money invested at simple interest amounts to
Rs. 16800 in 2 years and to Rs. 23100 in 9 years. What is the rate of simple interest per annum?Solution
A sum of money invested at simple interest amounts to Rs. 16800 in 2 years and to Rs. 23100 in 9 years. What is the rate of simple interest per annum? ∴ Interst paid in 7 years = 23100 − 16800 = Rs. 6300 Annual Interest = 6300/7 = Rs.900 Sum lent at the begining = 16800 − 900 × 2 = Rs. 15000 Rate of simple Interest = (900/15000) × 100 = 6%
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