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Question : At what rate of interest will a sum of INR 4,500 amount to INR 6,525 at simple interest for 5 years?

Option 1: 10%

Option 2: 9%

Option 3: 8%

Option 4: 12%


Team Careers360 23rd Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: 9%


Solution : Given: A sum of INR 4,500 amounts to INR 6,525 at simple interest for 5 years.
Use the formulas,
$SI=\frac{P\times R\times T}{100}$,
$A= SI +P$ where $SI$, $P$, $R$, $A$, and $T$ are the simple interest, principal, rate, amount, and time.
The simple interest for 5 years $=SI = 6525–4500=$ INR 2025.
The simple interest for 1 year $\frac{2025}{5}=$ INR 405.
According to the question,
$405=\frac{4500\times R\times 1}{100}$
⇒ $ R=\frac{405\times 100}{4500}=9$%
Hence, the correct answer is 9%.

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