Question

At what annual rate of interest will a sum of money amount to 17/16 of itself in 2 years and 6 months?



​

Answer 1

Answer:

R = 2.5 %

Step-by-step explanation:

Since we have given that

Let P be the principal .

Amount = 17 / 16p

Simple interest = p-17/16p p=1/16p

Time = 2 years and 6 months = 2 1/2 = 5/2

So, it becomes,

S.I = PxRxT / 100

1/16p = PxRx5 / 200

40/16 = R

R = 2.5 %

Hence, Rate of interest is 2.5%.