Question : INR 2,500, when invested for 8 years at a given rate of simple interest per year, amounted to INR 3,725 on maturity. What was the rate of simple interest that was paid per annum?
Option 1: 6%
Option 2: 6.125%
Option 3: 6.25%
Option 4: 5.875%
Latest: SSC CGL preparation tips to crack the exam
Don't Miss: SSC CGL complete guide
Correct Answer: 6.125%
Solution :
Principal amount, $P$ = Rs. 2500
Final amount with interest = Rs. 3725
Time duration of investment, $T$ = 8 years
Let the rate of interest be $R$%.
We know that, Simple Interest = $\frac{P\times R\times T}{100}$
According to the simple interest formula,
$\frac{2500\times R\times 8}{100}=3725-2500$
⇒ $R=\frac{1225\times 100}{2500\times 8}$
⇒ $R=6.125$%
Hence, the correct answer is 6.125%.
Related Questions
Know More about
Staff Selection Commission Combined Grad ...
Answer Key | Eligibility | Application | Selection Process | Preparation Tips | Result | Admit Card
Get Updates Brochure
Your Staff Selection Commission Combined Graduate Level Exam brochure has been successfully mailed to your registered email id “”.
