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Question : A certain sum of money amounts to Rs. 918 in 2 years and Rs. 969 in 3.5 years at simple interest. What is the rate of interest (in percent per year)?

Option 1: 4

Option 2: 5

Option 3: 6

Option 4: 8


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 12th Jan, 2024

Correct Answer: 4


Solution : Interest for 1.5 years = 969 - 918 = Rs. 51
i.e. 1 year interest = $\frac{51}{1.5}$
1 year interest = Rs. 34
Now Rs. 918 contains interest of Rs. 34 for two years (i.e. two times)
The principal amount is Rs. 918 – (Rs. 34 × 2) = Rs. 850
We know, Rate of Interest = $\frac{\text{Simple interest} \times 100}{\text{Principal×Time}} = \frac{68 \times 100}{850 \times 2} = 4$% per annum
Hence, the correct answer is 4.

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