The ratio of difference between CI and SI for 2 years to the difference of CI and SI for 3 years is 8 : 25. Find rate of interest.
Answer & explanation
Correct answer: option 4
Here, In the above figure,
(A*) = Difference b/w CI. and SI. for 2 years.
(A* + A + A + B) = (3A + B) = Difference b/w CI. and SI. for 3 years.
ATQ,
(A*) : (3A + B) = 8 : 25
A = 8,
3A + B = 25
24 + B = 25
B = 1
B is x% interest on A, therefore,
Rate of Interest = \(\frac{1}{8}\) × 100% = 12.5%