Question

A certain sum of money at simple interest becomes rs. 1062 in 2 years and rs. 1183.50 in 3½ years. What is rate of interest per annum?

Answer 1

Answer:

Rate of Interest = 14.84%

Step-by-step explanation:

As the question is not very clear ( 3½ years) is considered as 3Yrs.

Amount after 2 yrs = Rs. 1,062

Amount after 3 yrs = Rs. 1,183.50

Interest for 1 Yr = 1183.5 - 1062 = 121.5

Interest for 2 yrs = 121.5 *2 = 243

Principle = Amount - Interest = 1062 - 243 = 819

Let the rate of interest be R

As I = PTR/100

R = 100*I/PT = 100 * 243 / 819*2 = 14.84%