Practicing Success
A sum of money lent at simple interest amounts to ₹ 9,920 after 2 years and to ₹ 12,800 after 5 years. Find the rate of interest per annum. |
6.57% 12% 18% 9.68% |
12% |
Simple interest of 3 years = 12800 - 9920 = 2880 Simple interest of 1 year = \(\frac{2880 }{3}\) = 960 Simple interest of 2 year = 960 × 2 = 1920 Amount = Principal + Simple interest 9920 = Principal + 1920 Principal = 9920 - 1920 = 8000 We know , Simple Interest = \(\frac{Principal ×Rate × Time }{100}\) 960 = \(\frac{8000 ×Rate × 1}{100}\) Rate = 12% |