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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 |
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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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