Question
An amount of Rs. 12,000 invested at simple interest for 4
years becomes Rs. 17,280. Calculate the annual rate of interest.Solution
ATQ,
Interest earned = 17,280 - 12,000 = Rs. 5,280
Simple interest = Principal × rate × time ÷ 100
So, 5,280 = 12,000 × rate × 4 ÷ 100
Or, 5,280 = 480 × rate
Or, rate = 11
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