Question

At what rate per cent per annum will Rs. $1625$ amount to Rs. $2080$ in $3\frac{1}{2}$ years ?

• A. $8\%$
• B. $10\%$
• C. $12\%$
• D. $14\%$

Answer 1

Answer: (A)

$8\%$

We know that $I=\frac{PTR}{100}$

where $I$ is the simple interest

$P$ is the principal amount

$T$ is the time period and

$R$ is the rate of interest

and $A=P+I$

where $A$ is the total amount

Given that $P=1625,A=2080$ and $T=3\frac{1}{2}years=3.5$

Therefore, $2080=1625+\frac{1625\left(3.5\right)\left(R\right)}{100}$

$⟹455=\frac{5687.5\left(R\right)}{100}$

$⟹R=\frac{45500}{5687.5}=8\%$

Therefore, the rate of interest is $8\%$