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    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?
    A 20% Correct Answer Incorrect Answer
    B 18% Correct Answer Incorrect Answer
    C 25% Correct Answer Incorrect Answer
    D 32% Correct Answer Incorrect Answer

    Solution

    ATQ,

    Let the rate of interest be тАШr%тАЩ p.a.

    Let the amount received after 4 years be Rs. тАШ84xтАЩ.

    So, the amount after 6 years = (105/84) ├Ч 84x = Rs. тАШ105xтАЩ

    Interest received in 2 years = 105x тАУ 84x = Rs. тАШ21xтАЩ

    So, the yearly interest = (21x / 2) = Rs. тАШ10.5xтАЩ

    So, the sum invested = 84x тАУ 10.5x ├Ч 4 = Rs. тАШ42xтАЩ

    ATQ,

    42x ├Ч (r / 100) ├Ч 1 = 10.5x

    So, r = 25

    The rate of interest = r = 25%

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