Question 85

Simple Interest received by a person in 10 years on a principal of Rs 9500 is 130% of the principal. What is the rate of interest (in %) per annum?

Solution

Let the principal amount = Rs. $$100x$$

=> Simple interest = $$\frac{130}{100}\times100x=Rs.$$ $$130x$$

Let rate of interest = $$r\%$$ and time period = 10 years

=> $$S.I. = \frac{P \times r \times t}{100}$$

=> $$\frac{100x\times r\times10}{100}=130x$$

=> $$10r=130$$

=> $$r=\frac{130}{10}=13\%$$

=> Ans - (B)

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