Question
A sum was put at simple interest. The amount after 4 years
became (96/80) times the amount it had become in 2 years. What is the annual rate of interest?Solution
ATQ,
Let the rate of interest be ‘r%’ p.a.
Let the amount after 2 years be Rs. ‘80x’
So, amount after 4 years = (96/80) × 80x = Rs. ‘96x’
Interest in 2 years = 96x – 80x = Rs. ‘16x’
So, yearly interest = 16x / 2 = Rs. ‘8x’
Principal = 80x – 8x × 2 = Rs. ‘64x’
ATQ,
64x × (r / 100) × 1 = 8x
r = (8x × 100) / 64x = 12.5
The rate of interest = r = 12.5%
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