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.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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