Question

    Rs. 6,500 becomes Rs. 8,190 in 3 years at simple interest.

    Determine the rate of interest per annum.
    A 18.25 Correct Answer Incorrect Answer
    B 5.25 Correct Answer Incorrect Answer
    C 8.67 Correct Answer Incorrect Answer
    D 10.25 Correct Answer Incorrect Answer

    Solution

    ATQ,

    Interest earned = 8,190 - 6,500 = Rs. 1,690

    Simple interest = Principal × rate × time ÷ 100

    So, 1,690 = 6,500 × rate × 3 ÷ 100

    Or, 1,690 = 195 × rate

    Or, rate = 8.67

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