LIC AAO Model Paper 6

Question : 60 of 160

Marks: +1, -0

A sum of money at simple interest amounts to Rs. 14,160 in 3 years. If the rate of Interest is increased to 25%, the same sum amounts to Rs. 14,700 in the same time. The rate of interest is

5%
5 $1/2$ %
6%
7%
None of these

Validate

Solution:

P +

{Pr×3}/{100}

= 141600 .... (i)
P + P ×

{5r}/{400}

× 3 = 14700 .... (ii)
⇒ P +

5/4

(14160 - P) = 14700
⇒ 4P + 70800 - 5P = 58800
⇒ P = 70800 - 58800 = 12000
∴ From equation (i),
12000 +

{12000×r×3}/{100}

= 14160
⇒ 120 × 3 × r
= 14160 - 12000 = 2160
⇒ r =

{2160}/{120×3}

= %

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