New Click here to Enroll for SIDBI MSME Expert Class by ex-GM, SBI on Nov 24

    Register

    Question

    A sum increases by 75% in 10 years at a certain rate of

    simple interest per annum. By what percentage will the same sum increase in 6 years at the same rate of simple interest per annum?
    A 42% Correct Answer Incorrect Answer
    B 45% Correct Answer Incorrect Answer
    C 38% Correct Answer Incorrect Answer
    D 48% Correct Answer Incorrect Answer

    Solution

    Let the rate of interest and principal amount be R% and Rs. P respectively, According to the question, P+ (P x R x 10) ÷ 100 = 1.75 x P R = 7.5% Hence, the sum becomes after 6 years = P + (P x 7.5 x 6)/100 = Rs. 1.45P Thus, the sum becomes increases by = (1.45P-P) /P x 100% = 45% By 45% the same sum will increase in 6 years at the same rate of simple interest per annum.

    Practice Next