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    Question

    A certain amount of money at simple interest amounts to

    ₹1,404 in 2 years and to ₹1,560 in 5 years. What is the rate of simple interest per annum and principal?
    A 4%,1300 Correct Answer Incorrect Answer
    B 8%,1200 Correct Answer Incorrect Answer
    C 3%,1250 Correct Answer Incorrect Answer
    D 6%,1100 Correct Answer Incorrect Answer

    Solution

    Simple interest amounts in 2 years=1404 Simple interest amounts in5 years=1560 ATQ- 2years=1404   … (1) 5years=1560 … (2) Solving (2)-(1) 3=156 1=52 For equation (2) Rate of interest in 5years= (52×5)/ (1560-52×5) = (260/1300) ×100 =20% Rate of interest per annum=20/5=4% P=1404-104=1300rs.

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