Question
A person invests Rs. 2,400 at simple interest and
receives Rs. 288 as interest in 1 year and 8 months. What is the rate of interest per annum?Solution
ATQ,
Let the rate of interest = ‘z%’ p.a.
1 year and 8 months = 1 × 12 + 8 = 20 months
We have,
[2400 × z × (20/12)] ÷ 100 = 288
⇒ 40z = 288
⇒ z = 288 ÷ 40 = 7.2
So, rate of interest = 7.2%
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