Question

A sum of money at simple interest amounts to Rs. 500 in 3 years and Rs. 600 in 5 years. What is the rate of interest?

• A. $$13\frac{1}{7}$%$
• B. $$14\frac{2}{7}$%$
• C. $$12\frac{1}{3}$%$
• D. $$9\frac{1}{4}$%$

Answer 1

Answer:

$$14\frac{2}{7}$%$

Solution:

Formula Used:

S.I = PRT/100

S.I = A - P

Calculation:

Simple Interest for 2 years = Rs. 600 - Rs. 500 = Rs. 100

Principal Amount = Rs. 500 - (Rs. 100 / 2) × 3 = Rs. 350

Now, using the above formula

100 = (350 × r × 2)/100

r = (100 × 100) / (350 × 2) = 100/7

$r= 14\frac{2}{7}$%