Question 11

Simple interest on a sum of Rs 1400 for 3 years and 4 months is Rs 700. What is the rate (in percentage) of interest per annum?

Solution

Principal amount = Rs. 1400 and interest = Rs. 700

Let rate of interest = $$r\%$$ and time period = $$3\frac{4}{12}=3\frac{1}{3}=\frac{10}{3}$$ years

=> Simple interest = $$\frac{P\times R\times T}{100}$$

=> $$\frac{1400\times r\times10}{3\times100}=700$$

=> $$\frac{140r}{3}=700$$

=> $$r=\frac{700\times3}{140}$$

=> $$r=5\times3=15\%$$

=> Ans - (B)

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