Question

6. A certain amount of money amounts to 38,600 in 3 years and to 19,800 in 4 years. Find the principal
and rate of interest.
​

Answer 1

Answer:

(8–5) = 3 YEARS SIMPLE INT = 12005–9800 = 2205

SIMPLE INT PER YEAR = 2205/3 = 735

5 YEARS SIMPLE INT = 5*735 = 3675

PRINCIPAL AMOUNT = 9800–3675= 6125

RATE OF INT = (735/6125)*100 =12

THE RATE OF SIMPLE INT = 12% PER ANNUM