A sum of Rs 11500 amounts to Rs 12880 in

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Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Simple Interest

Question:

A sum of Rs 11500 amounts to Rs 12880 in 2 years at the rate of simple interest. What is the rate of interest?

Options:

6% per annum

4% per annum

8% per annum

10% per annum

Correct Answer:

6% per annum

Explanation:

SI = Amount - Principal = 12880 - 11500 = 1380

We know, SI = $\frac{PRT}{100}$

1380 = $\frac{11500 \times R \times 2}{100}$

R = 6% per annum