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If sum of money becomes 7/4 of itself in 3 years at certain rate of simple interest then find rate per annum 1. 22% p.a2. 25% p.a3. 24% p.a4. 20% p.a |
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Answer» Correct Answer - Option 2 : 25% p.a Given: Time = 3 years Amount ∶ Principal = 7 ∶ 4 Formula Used: Interest = Amount – Principal Simple interest = Principal × Interest Rate × Time /100 Calculation: Amount/Principal = 7/4 So, Principal = 4x And, Amount = 7x Interest = Amount – Principal ⇒ 3x = 7x - 4x Simple interest = Principal × Interest Rate × Time /100 ⇒ 3x = 4x × R × 3/100 ⇒ R = 25% p.a. ∴ The rate of interest is 25% p.a. |
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