New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    A sum of money becomes ₹5,600 in 4 years and ₹6,400

    in 8 years at simple interest. Find the rate of interest per annum.
    A 3% Correct Answer Incorrect Answer
    B 4.2% Correct Answer Incorrect Answer
    C 5% Correct Answer Incorrect Answer
    D 6.5% Correct Answer Incorrect Answer

    Solution

    Interest for 4 years = ₹6,400 - ₹5,600 = ₹800. So, interest per year = ₹800 / 4 = ₹200. Principal = ₹5,600 - (4 × ₹200) = ₹4,800. Rate of interest = (200 / 4800) × 100 = 4.2%.(approx) Answer: b) 4.2%

    Practice Next