Simple Interest Practice Test 2

Question : 11 of 40

Marks: +1, -0

A certain sum of money at simple interest amounts to Rs 1,012 in

1 2 /2

years and to Rs 1,067.20 in 4 years. The rate of interest per annum is:

2.5%
3%
4%
5%

Validate

Solution:

Simple interest for 1.5 years = Rs 1,067.20 - 1,012 = Rs 55.2
Simple interest for one year = 55.2 1.5 = Rs 36.8
Simple interest for four years = 36.8 × 4 = Rs 147.2
Principal = Amount - Simple Interest = 1,067.20 - 147.2
P = Rs 920
Now Rate of interest

={SI×100}/{P×T}

={36.8×100}/{920×1}=4%

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