Practicing Success
A sum of money amounts to ₹7,500 in 5 years, and to ₹8,500 in 7 years at simple interest at the same rate of interest. The rate of interest per annum is : |
12% 9% 8% 10% |
10% |
Simple interest of 2 years = 8500 - 7500 = 1000 Simple Interest of 1 year = 500 Simple interest of 5 years = 5 × 500 = 2500 Amount = Principal + Interest 7500 = Principal + 2500 Principal = 5000 Simple Interest = \(\frac{Principal ×Rate × Time }{100}\) 500 = \(\frac{5000×Rate × 1 }{100}\) Rate = 10% |