ABC26GN4044 · Simple Interest

Subject: General Aptitude · Chapter: Simple Interest · Exam: · Marks: · Difficulty:

A certain sum of money at simple interest amounts to ₹1012 in $2\frac{1}{2}$ years and to ₹1067.20 in 4 years. The rate of interest per annum is
(a)2.5%
(b)3%
(c)4%
(d)5%
Answer
Answer (as printed): C
Explanation
S.I. for $1\frac{1}{2}$ years $=₹(1067.20-1012)=₹55.20$. S.I. for $2\frac{1}{2}$ years $=₹\left(55.20 \times \frac{2}{3} \times \frac{5}{2}\right)=₹92$. ∴ Principal $=₹(1012-92)=₹920$. Hence, rate $=\left(\frac{100 \times 92 \times 2}{920 \times 5}\right)\%=4\%$.

Explanation as extracted from the printed page; notation may be imperfect.

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