12 Views

Question : At a certain rate of simple interest per annum, a certain sum amounts to INR 24,000 in 7 years and to INR 32,000 in 12 years. What is the rate of simple interest paid per annum?

Option 1: 15%

Option 2: 25%

Option 3: 12.5%

Option 4: 20%


Team Careers360 4th Jan, 2024
Answer (1)
Team Careers360 13th Jan, 2024

Correct Answer: 12.5%


Solution : Given: At a certain rate of simple interest per annum, a certain sum amounts to INR 24,000 in 7 years and to INR 32,000 in 12 years.
So, simple interest of 5 years = INR 32000 – INR 24000 = INR 8,000
$\therefore$ Simple interest of 1 year = $\frac{ 8000}{5}$ = INR 1,600
⇒ Simple interest of 7 years = 1600 × 7 = INR 11,200
Principal = The amount in 7 years – The simple interest of 7 years = 24000 – 11200 = INR 12,800
We know, Simple interest = $\frac{\text{Principal × Rate × Time}}{100}$
⇒ $11200=\frac{12800\times \text{Rate}\times 7}{100}$
⇒ Rate $=\frac{11200\times 100}{12800\times 7}=12.5\%$
Hence, the correct answer is 12.5%.

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books