New 👉 Ask your RBI Grade B 2025 Preparation Queries Here!!

    Question

    If Rs. 10,000 is invested at a simple interest rate of

    8% per annum, it accrues Rs. 1,200 as interest over a period of 't' years. Given the same duration 't', what annual simple interest rate is required for an investment of Rs. 16,000 to generate Rs. 2,400 in interest?
    A 6% Correct Answer Incorrect Answer
    B 5% Correct Answer Incorrect Answer
    C 8% Correct Answer Incorrect Answer
    D 10% Correct Answer Incorrect Answer

    Solution

    Simple interest = (principal X rate X time) ÷ 100
    ATQ;
    1,200 = (10,000 X 8 X t) ÷ 100
    Or, 't' = (1,200/800)
    Or, 't' = 1.5
    Let the required rate of interest be 'R%' p.a.
    So, 2,400 = 16,000 X 1.5 X R ÷ 100
    Or, 240R = 2,400
    Or, 'R' = 10
    Therefore, required rate of interest = 10% p.a.

    Practice Next