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    Question

    A certain sum was invested at simple interest. After 5

    years, it became (117/ ninety) times the amount it had reached in 3 years. Find the annual rate of interest.
    A 12.15% Correct Answer Incorrect Answer
    B 18.18% Correct Answer Incorrect Answer
    C 27.27% Correct Answer Incorrect Answer
    D 15.16% Correct Answer Incorrect Answer

    Solution

    ATQ,

    Let the rate of interest be ‘r%’ p.a.

    Let the amount after 3 years = Rs. ‘90x’

    So, amount after 5 years = (117/90) × 90x = Rs. ‘117x’

    Interest in 2 years = 117x – 90x = Rs. ‘27x’

    So, yearly interest = 27x / 2 = Rs. ‘13.5x’

    Principal = 90x – 13.5x × 3 = Rs. ‘49.5x’

    ATQ,

    49.5x × (r / 100) × 1 = 13.5x

    r = (13.5x × 100) / 49.5x = 27.27

    The rate of interest = r = 27.27%

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