Question
If a sum of money becomes 4000 in 2 yrs and 5500 in 4
yrs 6 months at the same rate of simple interest per annum. Then the rate of simple interest isSolution
Amount in 2 years = 4000 amount in 4.5 years = 5500 interest received in 2.5 years= 5500-4000 = 1500 interest received in 1 year = 600 interest received in 2 years = 1200 amount = principal + interest amount received in 2 years = principal + 1200 4000 - 1200 = 2800 principal = 2800 interest = 600 Rate of interest = (600/2800) Ă— 100 = 21(3/7)%
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