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.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%
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