If the ratio of principal and amount in the current year at a simple rate of interest is 9:17 and after 24 years this ratio will become 15:43. Find the rate of interest.
Answer & explanation
Correct answer: option 2
P : A ⇒ P : A
( 9 : 17) × 15 135 : 255
after 24 years (15 : 43) × 9 135 : 387
387 - 255 = 132 ( in 24 years)
SI in 1 year = \(\frac{132}{24}\) = 5.5
Rate = \(\frac{5.5}{135}\) × 100 % = 4.07%