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Question : A sum of Rs. 21850 amounts to Rs. 28623.50 in 5 years at the rate of simple interest. The rate percent is:

Option 1: 7.2% p.a.

Option 2: 4.8% p.a.

Option 3: 6.2% p.a.

Option 4: 6.8% p.a.


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: 6.2% p.a.


Solution : Given: Principal = Rs. 21850
Simple interest = Amount – Principal = Rs. 28623.50 – 21850 = 6773.5
Time = 5 years
Rate = to find
Simple interest = $\frac{\text{Principal × Rate × Time}}{100}$
⇒ $6773.5=\frac{21850 × \text{Rate} × 5}{100}$
⇒ Rate = $\frac{6773.5\times100}{21850 \times 5}$
⇒ Rate = $6.2$%
Hence, the correct answer is 6.2% p.a.

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