Question
A person deposited a sum at simple interest. The amount
after 5 years turned out to be (110/88) times of the amount he got in 3 years. Find the rate of interest.Solution
ATQ,
Let the rate of interest be ‘r%’ p.a.
Let the amount after 3 years = Rs. ‘88x’
Then, amount after 5 years = (110/88) × 88x = Rs. ‘110x’
Interest in 2 years = 110x – 88x = Rs. ‘22x’
Yearly interest = 22x / 2 = Rs. ‘11x’
Principal = 88x – 11x × 3 = Rs. ‘55x’
ATQ,
55x × (r / 100) × 1 = 11x
r = (11x × 100) / 55x = 20
The rate of interest = r = 20%
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