A sum of money at simple interest amounts to ₹1012 in 2\(\frac{1}{2}\) years while in 4 years it amounts to ₹1067.20. Find the rate of interest and the sum.
Answer & explanation
Correct answer: option 3
In 4 years amount = 1067.2
In 2\(\frac{1}{2}\) years amount = 1012
4 - 2\(\frac{1}{2}\) = 1.5,
In 1.5 years amount → 1067.2 - 1012 = 55.8
in 1.5 years → 55.8
in 1 year → 36.8
in 2.5 years → 92
Principle = 1012 - 92 = 920
R% = \(\frac{36.8}{920}\) × 100 = 4%