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The simple interest on a certain sum of money at the rate of 8% p.a. for 9 years is Rs. 2,880. At what rate of interest can the same amount of simple interest be received on the same sum in 6 years?1. 12%2. 10.5%3. 10%4. 14% |
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Answer» Correct Answer - Option 1 : 12% Given: Simple Interest = Rs. 2880 Rate % = 8% p.a Time = 9 years Formula used: Simple Interest = P × r/100 × t Where P = principal, r = rate % t = time Calculation: Simple interest = P × r/100 × t ⇒ 2880 = P × 8/100 × 9 ⇒ P = 2880 × 100/72 ⇒ P = Rs. 4000 According to the question, rate for 6 years for same interest can be found as ⇒ Simple interest = 4000 × r/100 × 6 ⇒ 2880 = 4000 × r/100 × 6 ⇒ r = 2880/240 ⇒ r = 12% ∴ The required rate percent is 12% |
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