Question

The SI on a sum of money for $3$ years is Rs. $9600$ and the CI on the sum at the same rate for $2$ years is Rs. $6800$. The rate % p.a. is:

• A. $12.5$
• B. $13.5$
• C. $14.5$
• D. $15.5$

Answer 1

Answer: (A)

$12.5$

$SI=\frac{P\times r\times t}{100}$

$9600=\frac{P\times r\times 3}{100}$

$P=320000/r$

$CI=P\left[\right(1+\frac{r}{100}{)}^n-1]$

$6800=\left(320000/r\right)\left[\right(1+\frac{r}{100}{)}^2-1]$

Solving for we get, $r\approx 12.5$