Question
An amount was invested at a simple interest rate. After 6
years, it amounted to (126/108) times the amount it had reached in 4 years. What is the rate of interest per annum?Solution
ATQ,
Let the rate of interest be βr%β p.a.
Let the amount after 4 years = Rs. β108xβ
So, amount after 6 years = (126/108) Γ 108x = Rs. β126xβ
Interest in 2 years = 126x β 108x = Rs. β18xβ
So, yearly interest = 18x / 2 = Rs. β9xβ
Principal = 108x β 9x Γ 4 = Rs. β72xβ
ATQ,
72x Γ (r / 100) Γ 1 = 9x
r = (9x Γ 100) / 72x = 12.5
The rate of interest = r = 12.5%
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