Simple & Compound Interest · Question 23 · Medium
A sum of money at simple interest amounts to ₹9,200 in 2 years and to ₹10,400 in 4 years. What is the rate of interest per annum?
- 6.5%
- 8%
- 7.5%
- 15%
Answer and explanation
Answer: C. 7.5%
Explanation: Interest for 2 years = 10,400 − 9,200 = ₹1,200, i.e. ₹600 a year. Principal = 9,200 − 1,200 = ₹8,000. Rate = 600/8000 × 100 = 7.5%.
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