Question
A certain amount was deposited at a fixed rate of simple
interest per annum. The amount after 6 years became (105/84) times the amount it had become in 4 years. What is the rate of interest?Solution
ATQ,
Let the rate of interest be ‘r%’ p.a.
Let the amount received after 4 years be Rs. ‘84x’.
So, the amount after 6 years = (105/84) × 84x = Rs. ‘105x’
Interest received in 2 years = 105x – 84x = Rs. ‘21x’
So, the yearly interest = (21x / 2) = Rs. ‘10.5x’
So, the sum invested = 84x – 10.5x × 4 = Rs. ‘42x’
ATQ,
42x × (r / 100) × 1 = 10.5x
So, r = 25
The rate of interest = r = 25%
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