Multiple choice

If any amount in 4 years with simple interest become Rs. 1300 and Rs. 1525 in seven years, find the interest rate.

  1. 7%

  2. 7.5%

  3. 8.5%

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

Interest for 3 years (7-4) = 1525 - 1300 = 225. Interest for 1 year = 75. Interest for 4 years = 300. Principal = 1300 - 300 = 1000. Rate = (Interest * 100) / (P * T) = (75 * 100) / (1000 * 1) = 7.5%.

AI explanation

The difference between the 7-year and 4-year amounts, which is 1525 minus 1300, equals 225; this represents the simple interest for 3 years. The yearly interest is 75, and subtracting 4 years of interest (300) from the 4-year amount gives the principal of 1000. The rate is calculated as 75 divided by 1000 multiplied by 100, which is 7.5%. The result is 7.5%.

Keep practicing — related questions