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A sum of money amounts to Rs.5,200 in 5 years and to Rs.5,680 in 7 years at simple interest. The rate of interest per annum is

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A sum of money amounts to Rs.5,200 in 5 years and to Rs.5,680 in 7 years at simple interest. The rate of interest per annum is
1). 3%
2). 4%
3). 5%
4). 6%

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2 answers

3 vote
Answered by on | Votes 3 |
option 4 is the right answer

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3 vote
Answered by on | Votes 3 |

I think it may be right answer

P + S.I. for 5 years = 5200 ..(i)
P + SI for 7 years = 5680 ...(ii)
On subtracting equation (i )
from (ii),
SI for 2 years = 480
 SI for 1 year = 240
From equation (i),
P + 5 × 240 = 5200
 P = 5200 – 1200 = 4000

R = $\frac{S.I\times100}{T\times P}$

= 6%




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