Question 50

if a sum of money becomes 4000 in 2 yrs and 5500 in 4 yrs 6 months at the same rate of simple interest per annum. Then the rate of simple interest is

Solution

Amount in 2 years = 4000

amount in 4.5 years = 5500

interest received in 2.5 years= 5500-4000 = 1500

interest received in 1 year = 600

interest received in 2 years = 1200

amount = principal + interest

amount received in 2 years = principal + 1200

4000 - 1200 = 2800

principal = 2800

interest = 600

Rate of interest = $$\frac{600}{2800} \times$$100 = $$ 21 \frac{3}{7}\% $$

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