Question

A certain sum of money amounts to Rs.1008 in 2 years and to Rs.1164 in 3.5 years. Find the rate of interest.

• A.
• B.
• C.
• D.

Answer 1

The correct option is A

Let the principal be Rs. x
Rate of interest be y
So,
In 3.5 yrs the amount is Rs. 1164
In 2 yrs the amount is Rs. 1008
So, in 1.5 yrs interest is Rs. 156
Hence, in 1 yr interest is $\frac{156}{1.5}=Rs.104$
Simple interest in 2 yrs = Rs. 104 $\times$ 2 = Rs. 208
Principal = Rs. 1008 – Rs. 208 = Rs. 800
Rate of interest $=\left(\frac{104}{800}\right)\times 100\%$ = $13\%$