Question

Hello! At simple interest sum becomes 49/40 of itself in 2 1/2 years. The rate of interest per annum is

(a) 7%. (b) 8% (c) 9%. (d) 12%

Answer 1

Answer:

9%

Hope it will help you

Answer 2

Principal = P

Amount = 49/40 of P

=> Amount = 49/40 * P

=> Amount = 49P/40

Time = 2.5 years

$amount =p (1 + \frac{tr}{100 } )$

49P/40 = P(1 + 2.5R/100)

49/40 = (1 + 0.025R)

49 = (1 + 0.025R)40

49 = 40 + R

49 - 40 = R

R = 9

Therefore Rate of interest = (c)9%.