Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Simple Interest

Question:

If the ratio of principal and the simple interest for 5 years is 10 : 7, then the rate of interest (per annum) is:

Options:

15%

20%

10%

14%

Correct Answer:

14%

Explanation:

Ratio of principal and the simple interest for 5 years is 10 : 7

Let principal = 10P  &  Simple interest = 7P

We know ,

Simple interest = \(\frac{Principal ×Rate × Time }{100}\)

7P = \(\frac{10P×Rate × 5 }{100}\)

Rate = 14%