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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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