Multiple choice

Shweta borrowed some money under simple interest. If she pays Rs. 10,000 at the end of 1 year and Rs. 18,200 at the end of second year, the debt will be cleared. Even if she pays Rs. 15,000 at the end of 1 year and Rs. 12,800 at the end of second year, then also the debt will be cleared. What is the rate of interest?

  1. 8%

  2. 9%

  3. 10%

  4. 11%

  5. 12%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let P be the principal and r be the rate of interest. The two scenarios provide equations: P(1+r) + P(1+2r) = 10000 + 18200 and P(1+r) + P(1+2r) = 15000 + 12800. Solving these systems leads to a rate of 8%.

AI explanation

If P is the principal and R is the rate, the two scenarios give the equations P(1+R) = 10000 + 18200/(1+R) and P(1+R) = 15000 + 12800/(1+R). Equating the right sides yields 10000 + 18200/(1+R) = 15000 + 12800/(1+R), meaning 5400/(1+R) = 5000. This solves to 1+R = 1.08, so R is 0.08 or 8 percent.

Keep practicing — related questions