Question

Find the rate at which a sum becomes $\frac{13}{10}$ times of itself in 6 years.

• A. 5%
• B. 4%
• C. 8%
• D. 10%

Answer 1

The correct option is A 5%

Let the sum invested be ₹ x.
So, the amount = ₹ 1.3x.

We know that,
Principal + Interest = Amount.
So, the interest earned = ₹ (1.3x - x) = ₹ 0.3x.

The Simple Interest earned on a sum of ₹ P for a period of T years at the rate of R% p.a S.I is given by $\frac{P\times R\times T}{100}$.

So, $0.3x=\frac{x\times R\times 6}{100}$
Hence, the rate of interest = R% = 5% p.a.