A sum of money becomes ₹34,800 in 2 years and ₹42,000 in 5 years at simple interest per annum. Find the…
Under simple interest the amount grows by the same sum each year. From year 2 to year 5 it grows from ₹34,800 to ₹42,000, so 3 years' interest is ₹7200 and one year's is…
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A sum of money becomes ₹34,800 in 2 years and ₹42,000 in 5 years at simple interest per annum. Find the rate of interest and the sum of money respectively.
Answer and explanation
Correct answer C
Under simple interest the amount grows by the same sum each year. From year 2 to year 5 it grows from ₹34,800 to ₹42,000, so 3 years' interest is ₹7200 and one year's is ₹2400. The principal is , and the rate is ; a rate of 7 percent on ₹30,000 would give only ₹2100 a year.
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