Multiple choice

What is the rate of simple interest for the first 5 years if the sum of Rs 750 becomes Rs 1240 in 8 years and the rate of interest for the last 3 years is 4%?

  1. 32/3%

  2. 30%

  3. 28%

  4. 18%

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

Total interest earned = Rs 1240 - Rs 750 = Rs 490 over 8 years. For last 3 years at 4%, interest = 750 × 4/100 × 3 = Rs 90. This leaves Rs 490 - Rs 90 = Rs 400 as interest for first 5 years. Let rate for first 5 years be r%. Then 750 × r/100 × 5 = 400, so r = (400 × 100)/(750 × 5) = 40000/3750 = 10.67% = 32/3%.

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