A sum of money amounts to Rs. 9800 after 5 years and Rs. 12005 after 8 years at the same rate of simple interest. The rate of interest per annum is:
Q1. A sum of money amounts to Rs. 9800 after 5 years and Rs. 12005 after 8 years at the same rate of simple interest. The rate of interest per annum is:
Answer: 12%
Explanation: Interest over 3 years = 12005 − 9800 = Rs. 2205; principal = 9800 − 5×(2205/3) = 6125; rate = 2205×100/(6125×3) = 12%.