At simple interest a certain sum amounts to ₹12,000 in 5 years and to ₹18,000 in 8 years. What is the rate of simple interest per annum on offer?
Answer & explanation
Correct answer: option 3
ATQ,
Simple interest of 3 years = 18000 - 12000 = 6000
Simple interest of 1 years = 2000
Principal sum = 12000 - 5 × 2000 = 2000
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
2000 = \(\frac{2000 × Rate × 1 }{100}\)
Rate = 100%