Multiple choice

A certain sum of money at a certain simple rate of interest, becomes Rs. 2100 in 2 years and Rs. 2250 in 5 years. Find rate of interest.

  1. 10%

  2. 5%

  3. 2.5%

  4. 1.2%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let P be principal and R be annual interest. Amount after 2 years = P + 2PR = 2100. Amount after 5 years = P + 5PR = 2250. Subtracting: 3PR = 150, so PR = 50. From first eq: P + 2(50) = 2100, so P = 2000. Rate = (50/2000) × 100 = 2.5%.

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