Multiple choice

A sum of money amounts to Rs.10962 after 5 years and Rs.13003.2 after 8 years at the same rate of simple interest. What is the rate of interest per annum?

  1. 5%

  2. 9%

  3. 8%

  4. 10%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Interest for 3 years = 13003.2 - 10962 = 2041.2. Annual interest = 680.4. Total interest for 5 years = 3402, so principal = 10962 - 3402 = 7560. Rate = (680.4 × 100) / 7560 = 9%.

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