Multiple choice

Sakshi borrows Rs.7000 at simple Interest from Tanshika. At the end of 3 years, she again borrows Rs.3000 and settled that amount after paying Rs.4615 as interest after 8 years from the time she made the first borrowing. What is the rate of interest?

  1. 5.5%

  2. 6.5%

  3. 7.5%

  4. 9.5%

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let r be the annual rate. First borrowing: Rs.7000 for 8 years gives interest = 7000 × r × 8 = 56000r. Second borrowing: Rs.3000 for 5 years (from year 3 to year 8) gives interest = 3000 × r × 5 = 15000r. Total interest = 56000r + 15000r = 71000r. Given 71000r = 4615, so r = 4615/71000 = 0.065 = 6.5%.

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