Multiple choice

Passage

Directions: Study the given information and answer the following question. A loan disbursement company offers different loan interest rates based on types of customers. The following table provides the details: Name Type of interest Principal Amount Year Rate (%) Low income group Compound Rs. 10,000 4 Females Simple Rs. 2,95,000 3 Senior citizens Compound Rs. 20,000 2 3 Students Simple 4 Persons with army background Compound 5 2

At what rate of interest will the amount for females become five times their principal?

  1. 63.58%

  2. 69.96%

  3. 60%

  4. 133.33%

  5. 162.58%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

For females, the interest is simple, and the amount must be five times the principal. Therefore, the simple interest is four times the principal, so P x r x 3/100 = 4P. Solving gives r = 133.33% per year.

AI explanation

To make the amount five times the principal at simple interest, the interest earned must be four times the principal, meaning S.I. = 4P. Using the simple interest formula S.I. = (P * R * T) / 100, we substitute the known values from the table for females, where the time is 3 years, to get 4P = (P * R * 3) / 100. Canceling P from both sides leaves 4 = 3R / 100, and solving for R gives a rate of 133.33%.

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