Multiple choice

A fixed amount becomes Rs 4032 in 2 years and Rs 4656 in 3.5 years. Find the simple interest rate.

  1. 10%

  2. 12.5%

  3. 13%

  4. 15%

  5. 22.5%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The difference between amounts after 2 years and 3.5 years is Rs. 4656 - Rs. 4032 = Rs. 624, which is interest for 1.5 years. For simple interest, interest for 2 years would be (624/1.5) × 2 = Rs. 832. So principal = Rs. 4032 - Rs. 832 = Rs. 3200. Rate = (SI × 100) / (P × T) = (832 × 100) / (3200 × 2) = 13%.

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