Question

Priya invest a sum of money at simple interest which amounts to Rs 1012 in $2\frac{1}{2}$years and to Rs 1067.20 in 4 years. The rate of interest per annum is

• A. 2.5%
• B. 3%
• C. 3.5%
• D. 4%
• E. None of these

Answer 1

The correct option is D 4%

SI over $1\frac{1}{2}year=1067.20-1012=55.2$
SI over $2\frac{1}{2}year=55.2\times \frac{2}{3}\times \frac{5}{2}=92$
Principal amount = 1012-92 = 920
$92=920\times \frac{5}{2}\times x\times \frac{1}{100}$
x = 4%