Question

    A sum of money invested at simple interest grows to 13

    times its original value in 96 years. Determine the annual rate of interest.
    A 11.10% Correct Answer Incorrect Answer
    B 12.5% Correct Answer Incorrect Answer
    C 25.20% Correct Answer Incorrect Answer
    D 28.22% Correct Answer Incorrect Answer

    Solution

    ATQ,

    Let the amount invested be Rs. 'a'. Interest earned = 13a - a = Rs. '12a Simple interest = Principal × rate × time ÷ 100 So, 12a = Pa × rate × 96 ÷ 100 Or, rate × 96 = 1,200 Or, rate = 12.5%

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