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      Question

      If Rs. 8,000 grows to Rs. 10,960 in 2 years at simple

      interest, what is the yearly interest rate?
      A 18.5 Correct Answer Incorrect Answer
      B 11.22 Correct Answer Incorrect Answer
      C 7.67 Correct Answer Incorrect Answer
      D 20.11 Correct Answer Incorrect Answer

      Solution

      ATQ,

      Interest earned = 10,960 - 8,000 = Rs. 2,960

      Simple interest = Principal × rate × time ÷ 100

      So, 2,960 = 8,000 × rate × 2 ÷ 100

      Or, 2,960 = 160 × rate

      Or, rate = 18.5

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