Q:
On simple interest an amount becomes Rs. 812 in two years and Rs. 924 in four years. What is the rate of interest on that amount?
Answer & Explanation
Answer: B) 8%
Explanation: We know,
S.I = PTR/100 where P = principal amount, T = time, R = rate of interest
Here in the given data,
Interest for two years S.I = 924 - 812 = Rs. 112
Now, Principal amount P = 812 - 112 = Rs. 700
Now,
R = S.I x 100/PT
R = 112 x 100/700 x 2
R = 11200/1400
R = 8%
Hence, the rate of interest R = 8%.
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