ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    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 тАШr%тАЩ p.a.

    Let the amount after 3 years = Rs. тАШ90xтАЩ

    So, amount after 5 years = (117/90) ├Ч 90x = Rs. тАШ117xтАЩ

    Interest in 2 years = 117x тАУ 90x = Rs. тАШ27xтАЩ

    So, yearly interest = 27x / 2 = Rs. тАШ13.5xтАЩ

    Principal = 90x тАУ 13.5x ├Ч 3 = Rs. тАШ49.5xтАЩ

    ATQ,

    49.5x ├Ч (r / 100) ├Ч 1 = 13.5x

    r = (13.5x ├Ч 100) / 49.5x = 27.27

    The rate of interest = r = 27.27%

    Practice Next
    More Simple and compound interest Questions

    Relevant for Exams:

    ask-question