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Question : A sum of Rs. 14500 will become Rs. 16675 in 36 months at some rate of simple interest. What is the rate of interest per annum?

Option 1: 6% per annum

Option 2: 5% per annum

Option 3: 4% per annum

Option 4: 7% per annum


Team Careers360 19th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: 5% per annum


Solution : Given,
Amount = Rs. 16675, Principal = Rs. 14500, time = 36 months = 3 years
Let the rate be $r$.
Simple interest = Amount – Principal = Rs. 16675 - Rs. 14500
We know, Simple interest = $\frac{\text{Principal × Rate × Time}}{100}$
⇒ $2175=\frac{14500\times r\times3}{100}$
⇒ $r=\frac{2175}{145\times3}$
⇒ $r = 5$%
Hence, the correct answer is 5% per annum.

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