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      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.
      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 β€˜r%’ p.a.

      Let the amount after 3 years = Rs. β€˜88x’

      Then, amount after 5 years = (110/88) Γ— 88x = Rs. β€˜110x’

      Interest in 2 years = 110x – 88x = Rs. β€˜22x’

      Yearly interest = 22x / 2 = Rs. β€˜11x’

      Principal = 88x – 11x Γ— 3 = Rs. β€˜55x’

      ATQ,

      55x Γ— (r / 100) Γ— 1 = 11x

      r = (11x Γ— 100) / 55x = 20

      The rate of interest = r = 20%

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