Goods were purchased for Rs. 600 and sold for Rs. 688.50 on a 9-month credit, resulting in a 2 percent profit. The annual rate of interest is:
A. 16 2/3%
B. 14 1/2%
C. 13 1/3%
D. 15%
Answer:A
Goods were purchased for Rs. 600 and sold for Rs. 688.50 on a 9-month credit, resulting in a 2 percent profit. The annual rate of interest is:
A. 16 2/3% B. 14 1/2% C. 13 1/3% D. 15%
Explanation: 102 percent of Rs. 600 = 102 times 600 = Rs. 612,P.W. now equals Rs. 612, and total equals Rs. 688.50.T.D. = Rs. 76.50 (688.50 - 612) = Rs. 688.50S.I. on Rs. 612 for 9 months is thus Rs. 76.50.Rate = 100 x 76.50/ 612 x 3/4% = 16 %