A sum of money at simple interest amounts to Rs. 14,160 in 3 years. If the rate of interest is increased to 25%, the same sum amounts to Rs. 14,700 in the same time. The rate of interest is 5% $5 \frac{1}{2}$ 6% 7%

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INSURANCE EXAMS (New India Assurance) 2011 click here to view all questions

A sum of money at simple interest amounts to Rs. 14,160 in 3 years. If the rate of interest is increased to 25%, the same sum amounts to Rs. 14,700 in the same time. The rate of interest is

A$\text{5%}$

B$5 \frac{1}{2}$

C$\text{6%}$

D$\text{7%}$

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Correct answer is: 6% Explanation: $P+\frac{Pr\times 3}{100}=14160$ $P+P\times \frac{5r}{400}\times 3=14700$ $[RateofInt.=r+\frac{25}{100}r]$ (By Ii) and (ii) $P+\frac{5}{4}(14160-P)$ $=>4P+70800-5P=58800$ $=>P=70800-58800-12000$ $\text{Therefore, From equation (i),}$ $12000+\frac{12000\times r\times 3}{100}$ $120\times 3\times r=14160-12000=2160$ $=>r=\frac{2160}{120\times 3}$ $r=6\text{\%}$ upendra ? answered undefined All Comments

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