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Question : If a sum of money becomes INR 6,000 in 3 years and INR 10,500 in 7 years and 6 months at the same rate of simple interest, then what is the rate of interest?

Option 1: $33 \frac{1}{3}$%

Option 2: $25 \frac{1}{2}$%

Option 3: $45 \frac{2}{3}$%

Option 4: $66 \frac{1}{3}$%


Team Careers360 21st Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: $33 \frac{1}{3}$%


Solution : Given:
A sum of money becomes INR 6,000 in 3 years and INR 10,500 in 7 years and 6 months at the same rate of simple interest.
The difference between the two sums is the interest earned for the period.
Interest earned for 4 years 6 months = 10500 – 6000 = INR 4,500
Interest earned for 1 year = $\frac{4500}{4.5}$ = INR 1,000
Interest earned for 3 years = 1000 × 3 = INR 3,000
Principal = Sum – Interest for 3 years
⇒ Principal = 6000 – 3000 = INR 3,000
Simple Interest $=\frac{\text{Principal×Rate×Time}}{100}$
⇒ $3000 = \frac{3000×\text{Rate}×3}{100} $
⇒ Rate $=\frac{100}{3}$%
⇒ Rate $=33\frac{1}{3}$%
So, the rate of interest is $33\frac{1}{3}$%.
Hence, the correct answer is $33\frac{1}{3}$%.

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