Question

A sum of money at simple interest amounts to Rs. 2,800 in 2 years and Rs. 3.250 in 5 years. Find the original sum and the rate of interest.

• A. Rs. 2500 and 6%
• B. Rs. 2000 and 5%
• C. Rs. 1000 and 10%
• D. Rs. 3000 and 15%

Answer 1

The correct option is A Rs. 2500 and 6%

A sum of money at simple interest amounts Rs. 2,800 in 2 years and Rs.3.250 in 5 years

$\therefore$ Interst paid in 3 years $=3250-2800=450$ Rupees

Annual Interest $=450÷3=150$ Rupees

Sum lent at the begining $=2800-150\times 2=2500$ Rupees

Rate of simple Interest $=\left(150/2500\right)\times 100=6$ percent