Question

A sum of money becomes $\frac{7}{6}$ of itself in 3 years at a certain rate of simple interest. The rate of interest per annum is:

• A. $5\frac{5}{9}\%$
• B. $6\frac{5}{9}\%$
• C. $18$
• D. $25$

Answer 1

The correct option is A $5\frac{5}{9}\%$

Sum$=x$

Amount$=\frac{7x}{6}$

Simple Interest$=$Amount$-$Sum$=\frac{7x}{6}-x=\frac{7x-6x}{6}=\frac{x}{6}$

Given$:$Time$=3$years

$\therefore$Rate$=\frac{100\times x}{x\times 6\times 3}$percentage$=5\frac{5}{9}$percentage