Question

Certain sum of money deposited at simple interest yield Rs. $4400$ in two years and Rs. $5500$ in a $4$ years. Find the rate of interest.

Answer 1

Simple Interest for the first $2$ years $=Rs.4400$

Simple Interest for $4$ years $=Rs.5500$

Net simple interest for third and fourth years $=Rs(5500-4400)=Rs.1100$

$\Rightarrow 1100=\frac{4400\times 2\times R}{100}$

$\Rightarrow R=\frac{100\times 1100}{4400\times 2}$

$=\frac{25}{2}\%$

$=12\frac{1}{2}\%$