Question

A sum of money amounts to Rs. 9800 after 5 years and Rs. 12005 after 8 years at the same rate of simple interest. The rate of interest per annum is:

Answer 1

S.I. for 3 years = Rs. (12005 - 9800) = Rs. 2205.

S.I. for 5 years = Rs. (2205/3) x 5 = Rs. 3675

3

Principal = Rs. (9800 - 3675) = Rs. 6125.

Hence, rate = (100 x 3675 /6125×5)% = 12%