Question

Given that the interest is only earned on principal, if an investment of rs.1000.00 amount to rs.1440.00 in two years, then what is the rate of interest earned? A)20% b)22% c)21% d)11% e)44%

Answer 1

Answer:

B) 22%

Step-by-step explanation:

A = P + SI

1440 = 1000 + x*2*1000/100

440 = 20*x

x = 22

Answer 2

Answer:

Option b.

Step-by-step explanation:

It is given that the interest is only earned on principal. It means, it is a simple interest.

Formula for simple interest:

$I=\dfrac{P\times r\times t}{100}$

where, P is principle, r is rate of interest in % and t is time in years.

Principle = 1000

Interest = Amount - Principle

             = 1440 - 1000

             = 440

Time = 2 year

Substitute these value in the above formula.

$440=\dfrac{1000\times r\times 2}{100}$

$440=\dfrac{2000r}{100}$

$440=20r$

Divide both sides by 20.

$22=r$

The rate of interest is 22%. Therefore, the correct option is b.