At the same rate of simple interest, a sum of money grows to Rs. 9800 after 5 years and Rs. 12005 after 8 years. The annual rate of interest is:
A. 5%
B. 8%
C. 12%
D. 15%
Answer:C
At the same rate of simple interest, a sum of money grows to Rs. 9800 after 5 years and Rs. 12005 after 8 years. The annual rate of interest is:
A. 5% B. 8% C. 12% D. 15%
Explanation: For a three-year period, S.I. equals Rs. (12005 - 9800) = Rs. 2205. 5 years of S.I. = Rs. 2205/3 x 5 = Rs. 3675.Principal = Rs. 6125 (9800 - 3675).As a result, rate = 100 x 3675/6125 X 5% = 12 percent.