Question

The simple interest earned on Rs. 7,000 in 2 years at the rate of R% per annum equals to the simple interest earned on Rs. 5,000 at the rate of 5% per annum in 14 years. The value of R (in percentage) is:

• A. 28%
• B. 15%
• C. 25%
• D. 20%

Answer 1

Answer:

C. 25%

Solution: Given A person invests on simple interest = Rs. 7000 A person invests on simple interest = Rs. 5,000 Rate of Interest = R% Rate of Interest = 5% Time = 2 year Time = 14 year Formula used. Simple interest = Principal × Time × Rate/100 Amount = Principal(1 - Rate/100)2 Calculation The Rate of Interest for the first and second sum is R% and 5% p.a. respectively. (7000 × R × 2) / 100 = ((5000) × 14 × 5) / 100 ⇒ 140R = 3500 ⇒ R = 3500/140 ⇒ R = 25 The value of R (in percentage) is 25.