With a given rate of simple interest, the ratio of principal and amount for a certain period of time is 3 : 4 . After 4 years, with the same rate of interest, the ratio of the principal and amount becomes 7 : 8 . The rate of interest is?
Answer & explanation
Correct answer: option 1
P : A ⇒ P : A
3 : 4 after 4 years 7 : 8
Since P remains same
21 : 28 21 : 24
28 - 24 = 4 ( in 4 years)
SI in 1 year = \(\frac{4}{4}\) = 1
Rate = \(\frac{1}{21}\) × 100 % = \(\frac{100}{21}\)%