Question 11

The simple interest on a sum is 7/8 of the principal for 5 years. What is the rate (in percentage) of interest per annum?

Solution

Let principal amount = Rs. $$8x$$

=> Simple interest = $$\frac{7}{8}\times8x=Rs.$$ $$7x$$

Let rate of interest = $$r\%$$ and time period = 5 years

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

=> $$\frac{8x\times r\times5}{100}=7x$$

=> $$\frac{2r}{5}=7$$

=> $$x=\frac{5\times7}{2}=\frac{35}{2}=17.5\%$$

=> Ans - (B)

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