7 Views

Question : The simple interest on a sum of money for 3 years is Rs. 240 and the compound interest on the same sum at the same rate for 2 years is Rs. 170. The rate of interest is:

Option 1: $8$%

Option 2: $29\frac{1}{6}$%

Option 3: $12\frac{1}{2}$%

Option 4: $5\frac{5}{17}$%


Team Careers360 19th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: $12\frac{1}{2}$%


Solution : Simple interest (SI) for 1 year = $\frac{240}{3}$ = Rs. 80
⇒ Simple interest for 2 years = 80 × 2 = Rs. 160
Difference between compound interest (CI) and SI for 2 years = 170 – 160 = Rs. 10 which is interest on Rs. 80
So, $R=\frac{10}{80}$ × 100 = $12\frac{1}{2}$%
Hence, the correct answer is $12\frac{1}{2}$%.

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
GRE ® Registrations 2024
Apply
Apply for GRE® Test now & save 10% with ApplyShop Gift Card | World's most used Admission Test for Graduate & Professional Schools
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