Question

A man earns an interest of ₹510 on a sum he lent at 17% per annum for two years. Had he earned 10% more interest on the same amount in same time , what should be the rate of interest?

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Solution

The correct option is **D** 18.7%

S.I = ₹510

∵ S.I = P×R×T100

⇒ P = S.I×100R×T

⇒ P = 510×10017×2

⇒ P = ₹1,500

If, interest is 10% more

⇒ S.I = 510 + 10% of 510

⇒ S.I = ₹561

∴ R = S.I×100P×T

⇒ R = 561×1001,500×2

⇒ R = 18.7 %

The rate of interest should be 18.7%.

S.I = ₹510

∵ S.I = P×R×T100

⇒ P = S.I×100R×T

⇒ P = 510×10017×2

⇒ P = ₹1,500

If, interest is 10% more

⇒ S.I = 510 + 10% of 510

⇒ S.I = ₹561

∴ R = S.I×100P×T

⇒ R = 561×1001,500×2

⇒ R = 18.7 %

The rate of interest should be 18.7%.

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