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Question : A sum of Rs. 11,500 amounts to Rs. 12,880 in 2 years at the rate of simple interest. What is the rate of interest?

Option 1: 6% per annum

Option 2: 4% per annum

Option 3: 8% per annum

Option 4: 10% per annum


Team Careers360 13th Jan, 2024
Answer (1)
Team Careers360 14th Jan, 2024

Correct Answer: 6% per annum


Solution : A sum of Rs. 11,500 amounts to Rs. 12,880 in 2 years at the rate of simple interest.
Simple interest = 12880 – 11500 = 1380
Also, Simple interest $=\frac{\text{Principal × Rate × Time}}{100}$
⇒ $1380 = \frac{11500×\text{Rate}×2}{100}$
⇒ Rate $= \frac{1380}{230}$
$\therefore$ Rate $=6$%
Hence, the correct answer is 6% per annum.

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