Q32
ArithmeticSimple & Compound Interest
A certain sum of money amounts to ₹ 600 in 2 years and ₹ 700 in 4 years at a certain rate of simple interest. Find the rate of interest.
- a.5%
- b.8·16%
- c.10%
- d.16·33%
Answer: (C) 10%
Interest for the extra 2 years is 700 − 600 = ₹ 100, i.e. ₹ 50 a year, so the principal is 600 − 100 = ₹ 500. The rate is 50 ÷ 500 × 100 = 10%. Using ₹ 600 as the principal would give about 8·33%, which matches no option.