Gopi invested a sum of Rs. 42,500 at a certain rate of simple interest. He finds that the interest…
The investment period is 13 years. The increase in simple interest is 42,500 times 10 times t / 100 = 4,250t, so t = 55,250 / 4,250 = 13.
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Gopi invested a sum of Rs. 42,500 at a certain rate of simple interest. He finds that the interest payable to him by the bank increases by Rs. 55,250 when the rate of simple interest is increased by 10 percentage points. Find the period of investment.
Answer and explanation
Correct answer C
The investment period is 13 years. The increase in simple interest is 42,500 times 10 times t / 100 = 4,250t, so t = 55,250 / 4,250 = 13.
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