A sum of money at simple interest amounts to ₹550 in 3 years while in 5 years it amounts to ₹750. Find the sum and the rate of interest.
Answer & explanation
Correct answer: option 3
Interest in 2 years = 750 - 550 = 200
Interest in 1 year = 100
Principal = 550 - (3 x 100)
= 550 - 300 = 250
rate = \(\frac{100}{250}\) x 100 = 40%