Question

A certain sum of money at simple interest becomes Rs. 1062 in 2 years and Rs. 1183.50 in 31⁄2 years. What
is rate of interest per annum?
(a) 7%
(b) 6%
(c) 9%
d) 5% ​

Answer 1

I think it may be 9%

Answer 2

Difference between two interests

1183.50-1062 = 121.50 for (3.5-2) years i.e. 1.5 yrs

So for 1 year interest is

=> 121.5/1.5= Rs.81

For 2 yrs interest is

81*2= Rs.162

Then principal

1062 - 162= Rs. 900

Therefore, rate of interest per annum is 81/900*100 i.e  9%