Question

Ramesh borrowed $Rs14000$ from a bank on simple interest for a period of $5$ years. He returned $Rs6000$ to the bank at the end of three years and $Rs10,900$ at the end of the five years and closed the account. Find the rate of interest per annum.

• A. $4\%$
• B. $4.14\%$
• C. $6\%$
• D. $9\%$

Answer 1

The correct option is B $4.14\%$

We have,

$P=Rs.14000$

Ramesh returned $Rs.6000$ to the bank at the end of $3$ years.

And returned $Rs.10,900$ to the bank at the end of $5$ years.

So, the total amount returned by Ramesh is $6000+10,900=Rs.16,900$

$T=5years$

$R=?$

We know that

$A-P=\frac{PRT}{100}$

So,

$16900-14000=\frac{14000\times R\times 5}{100}$

$2900=140\times R\times 5$

$R=4.14\%$

Hence, this is the answer.