Practicing Success
₹2,500, when invested for 8 years at a given rate of simple interest per year, amounted to ₹ 3,725 on maturity. What was the rate of simple interest that was paid per annum? |
6% 6.125% 6.25% 5.875% |
6.125% |
Principal = Rs 2500 Amount = Rs 3725 Interest = Amount - Principal = 3725 - 2500 = Rs 1225 Interest = 1225 for 8 years Interest for 1 year = \(\frac{1225}{8}\) ∴ Rate% = \(\frac{Interest}{Principal}\) × 100 ∴ Rate% = \(\frac{1225/8}{2500}\) × 100 = 6.125% |