Question

6. A well-known company advertises Make Fixed Deposits of 50 lakhs with us

become crorepati in 5 years flat! If the company offers simple interest. then their rate of

interest is,

a) 15%

b) 20%

c) 255
d) 25%​

Answer 1

SOLUTION

TO CHOOSE THE CORRECT OPTION

A well-known company advertises Make Fixed Deposits of 50 lakhs with us become crorepati in 5 years flat. If the company offers simple interest, then their rate of interest is

a) 15%

b) 20%

c) 25.5%

d) 25%

EVALUATION

Here it is given that a well-known company advertises Make Fixed Deposits of 50 lakhs with us become crorepati in 5 years flat.

Now the company offers simple interest

So

Principal = P = 50 lakh

Interest = I = 100 lakh - 50 lakh = 50 lakh

Rate of interest = R%

Time = T = 5 years

So by the given condition

$\displaystyle \sf{I = \frac{PRT}{100} }$

$\displaystyle \sf{ \implies \: 5000000 = \frac{5000000 \times R \times 5}{100} }$

$\displaystyle \sf{ \implies \: 1 = \frac{R \times 5}{100} }$

$\displaystyle \sf{ \implies \: \frac{5R }{100} = 1 }$

$\displaystyle \sf{ \implies \: \frac{R }{20} = 1 }$

$\displaystyle \sf{ \implies \: R = 20 }$

So the required rate of interest = 20%

FINAL ANSWER

Hence the correct option is b) 20%

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