Question

A certain sum of money at simple interest amounts to Rs. 1012 in $2\frac{1}{2}$ years and toRs. 1067.20 in 4 years.The rate of interest per annum is

• A. 2.5%
• B. 3%
• C. 4%
• D. 5%

Answer 1

The correct option is C 4%

$S.Ifor1\frac{1}{2}years=1067.20-1012=55.20Rs.$
$S.I.for2\frac{1}{2}years=55.20\times \frac{2}{3}\times \frac{5}{2}=92Rs.$
$Sum=1012-92=920Rs.$
$\therefore Rateofinterest=\frac{100\times 92\times 2}{920\times 5}=4$