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

    Question

    Rs. 2,800 increases to Rs. 3,640 in 4 years at a simple

    interest rate of r% per annum. If Rs. 7,000 is put at 2r% per annum for 1 year, how much interest will it earn?
    A Rs.1125 Correct Answer Incorrect Answer
    B Rs.1050 Correct Answer Incorrect Answer
    C Rs.2250 Correct Answer Incorrect Answer
    D Rs.1220 Correct Answer Incorrect Answer

    Solution

    ATQ,

    Interest earned in 4 years = 3640 тАУ 2800 = Rs. 840

    Simple interest = Sum invested ├Ч rate of interest ├Ч time period in years ├╖ 100

    So, 840 = 2800 ├Ч r ├Ч 4 ├╖ 100

    Or, r = 840 ├╖ (4 ├Ч 28)

    So, r = 7.5

    So, new rate of interest = 2 ├Ч 7.5 = 15% p.a.

    So, required interest = 7000 ├Ч 15 ├Ч 1 ├╖ 100 = Rs. 1,050

    Practice Next
    More Simple and compound interest Questions
    ask-question