Simple Interest Practice Test 1

Question : 8 of 40

Marks: +1, -0

A person invests Rs 12,000 as a fixed deposit at a bank at the rate of 10% per annum simple interest. But due to some pressing needs, he has to withdraw the entire money after 3 years, for which the bank allowed him a lower rate of interest. If he gets Rs 3,320 less than what he would have got at the end of 5 years, the rate of interest allowed by the bank is:

$7 5/9%$
$7 4/9%$
$7 8/9%$
$8 7/9 %$

Validate

Solution:

P = Rs 12,000, R = 10%, Time = 5 years

SI={P×R×T}/100

={12000×10×5}/100=6000

After 3 year money reduce by him = 6,000 - 3,320 = Rs 2,680
Rate of interest

={SI×100}/{P×T}

={2680×100}/{12000×3}=7 4/9%

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