A sum of money lent on simple interest becomes \(7\over5\) of itself in 4 years. Find the rate of interest per annum.
10%
The correct answer is Option 3 i.e. 10%.
Let principal(P) = ₹x
Amount after 4 years = ₹\(7\over5\)x
Interest = \(7\over5\)x - x = ₹\(2\over5\)x
SI = \({PRT}\over100\)
⇒ \(2\over5\)x = \({x imes R imes 4}\over100\)
⇒ \(2\over5\) = \({R imes 4}\over100\)
⇒ R = 10%
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Important Questions from Simple Interest
How much time will it take for an amount of Rs. 450 to yield Rs. 81 as interest at 4.5% per annum of simple interest ?
Nirav and Mehul borrowed Rs.4000 and Rs.5000 respectively for 2.5 years at the rate of x% per annum. Mehul paid Rs 125 more interest than Nirav. Find x.
If the interest on a sum of Rs.1200 is more than the interest on Rs.1000 by Rs.120 in three years, then what is the rate of interest per annum?.
The difference between the simple interest received from two banks on Rs. 500 for two years is Rs. 2.50. What is the difference between their rates?
A sum of Rs.1200 becomes Rs.1560 at a rate of simple interest in 3 years. In how many years will the sum of Rs.800 amount to Rs.1120 at the same rate of simple interest?
