Question

The simple interest on a certain sum of money at the rate of 5% p.a. for 8 years in Rs. 840. At what rate of interest the same amount of interest can be received on the same sum after 5 years?

• A. 6%
• B. 8%
• C. 9%
• D. 10%

Answer 1

The correct option is B 8%

$Sum=\left(\frac{100\times 840}{5\times 8}\right)=Rs.2100$

$Raterequired=\left(\frac{100\times 840}{2100\times 5}\right)\%=5\%$