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 ?Solution
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%
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