Question

Ankita borrows Rs 7000 at simple interest from a lender. At the end of 3 years, she again borrows Rs 3000 and settled that amount after paying Rs 4615 as interest after 8 years from the time she made the first borrowing. What is the rate of interest?

• A. 5.5%
• B. 9.5%
• C. 7.5%
• D. 6.5%
• E. None of the above

Answer 1

The correct option is D 6.5%

SI for Rs. 7000 for 8 years $=\frac{7000\times r\times 8}{100}$
Amount Ankita again borrowed = Rs. 3000
$SI=\frac{3000\times r\times 5}{100}$
Total interest $=\left[\frac{7000\times r\times 8}{100}\right]+\left[\frac{3000\times r\times 8}{100}\right]=4615$
560r + 150r = 4615
710r = 4615
r = 6.5%