1.

A sum of money invested at simple interest becomes 13/10 of itself in 2 years and 6 months. What is the rate (in percentage) of interest per annum?1). 102). 153). 124). 18

Answer»

LET the sum of money invested be a and rate of interest be r

Time of INVESTMENT = 2 years 6 months = 2.5 years

Simple interest = (PRINCIPLE × time × rate)/100 = (a × r × 2.5)/100 = ar/40

According to the question,

Amount = (13/10) × Sum of money invested

⇒ (ar/40) + a = (13/10) × a

⇒ (r + 40)/40 = 13/10

⇒ r + 40 = 52

∴ r = 12%


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