Question

At what rate percent per annum will $Rs.120$ amount to $Rs.130$ in $2\frac{1}{2}$ years ?

• A. $\frac{10}{3}\%$ p.a
• B. $\frac{11}{3}\%$ p.a
• C. $\frac{13}{3}\%$ p.a
• D. Data insufficient
  

Answer 1

The correct option is A $\frac{10}{3}\%$ p.a

$P=$ Rs. $120,A=$ Rs. $130$
$T=2\frac{1}{2}$ yrs $=\frac{5}{2}$ $yrs.$

$R=?$
$S.I.$ $=A-P=$ Rs. $130-$ Rs. $120=$ Rs. $10$

$S.I.$ $=\frac{PRT}{100}$

$R=\frac{S.I.\times 100}{P\times T}=\frac{10\times 100}{120\times 5/2}$

$=$ $\frac{1000\times 2}{120\times 5}=\frac{10}{3}\%$ p.a. $=3\frac{1}{3}$ $\%$ p.a