Multiple choice

Shilpa invests a certain amount at simple interest calculated per annum. It amounts to Rs. 8,280 in 3 years and Rs. 8,640 in 4 years. What is the rate of interest per annum?

  1. 7%

  2. 6%

  3. 5%

  4. 4%

  5. None
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Interest for 1 year = 8640 - 8280 = 360. Principal = 8280 - (3 * 360) = 8280 - 1080 = 7200. Rate = (Interest / (Principal * Time)) * 100 = (360 / 7200) * 100 = 5%.

AI explanation

The difference between the amounts for 4 years and 3 years represents the simple interest earned in one year, so the annual interest is 8640 minus 8280, which equals 360. The principal is found by subtracting three years of interest from the 3-year amount, giving 8280 minus 1080, which equals 7200. Using the formula R equals SI times 100 divided by P times T, the rate is 360 times 100 divided by 7200 times 1, resulting in a rate of 5%.

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