A certain sum of money at simple interest amounts to ₹1012 in 21/2 years and to ₹1067.20 in 4 years. The rate… · ABC26GN4044

Subject: General Aptitude · Chapter: Simple Interest

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.

Study loop for Simple Interest

1. Practise the PYQsPrevious-year questions, with answers

· Browse this chapter in the app