Question

A person invested Rs 1,600 for 3 years and Rs 1,100 for 4 years at the same rate of simple interest. The total interest from these investments was Rs 506. Find the rate percent per annum

• A. 5%
• B. $5\frac{1}{2}$%
• C. 6%
• D. $6\frac{1}{2}$%

Answer 1

The correct option is B $5\frac{1}{2}$%

$P_1=1,600,t_1=3$
$P_2=1,1000,t_2=4$
$S{I}_1+S{I}_2=506$
or $\frac{1,600\times 3\times r}{100}+\frac{1,100\times 4\times r}{100}=506$
or $r(4,800+4,400)=506\times 100$
or $r=\frac{506\times 100}{92,000}=5.5$%