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A certain sum of money at simple interest amounts to Rs. 1260 in 2 years and to Rs. 1350 in 5 years. The rate percent per annum is?

A. 

4.50 %

B. 

3.50 %

C. 

2.50 %

D. 

1.50 %

Answer
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Answer with explanation

Answer: Option C

Explanation

A certain sum of money at simple interest amounts to Rs.1260 in 2 years

The same sum of money at simple interest amounts to Rs.1350 in 5 years

Formula used:

S.I = ( P × N × R)/100

Calculation:

Let the Principal be P

S.I for 3 years = 1350 – 1260 = Rs.90

⇒ S.I for 1 year = 90/3 = Rs.30

⇒ S.I for 2 years = 30 × 2 = Rs.60

∴ Principal, P = 1260 – 60 = Rs.1200

Now,

S.I = ( P × N × R)/100

60 = (1200 × 2 × R)/100

∴ R = (60 × 100)/(1200 × 2) = 2.50%

∴ Rate of interest is 2.50%

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Comments

  1. MOHINI SHREE says

    August 31, 2021 at 10:07 pm

    A certain sum of money at simple interest amounts to Rs.1260 in 2 years

    The same sum of money at simple interest amounts to Rs.1350 in 5 years

    Formula used:

    S.I = ( P × N × R)/100

    Calculation:

    Let the Principal be P

    S.I for 3 years = 1350 – 1260 = Rs.90

    ⇒ S.I for 1 year = 90/3 = Rs.30

    ⇒ S.I for 2 years = 30 × 2 = Rs.60

    ∴ Principal, P = 1260 – 60 = Rs.1200

    Now,

    S.I = ( P × N × R)/100

    60 = (1200 × 2 × R)/100

    ∴ R = (60 × 100)/(1200 × 2) = 2.50%

    ∴ Rate of interest is 2.50%

    Reply

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