Question:
Prem invested a certain sum of money in a simple interest bond whose value grew to Rs 300 at the end of 3 years and to Rs 400 at the end of another 5 years. What was the rate of interest in which he invested his sum ?
Prem invested a certain sum of money in a simple interest bond whose value grew to Rs 300 at the end of 3 years and to Rs 400 at the end of another 5 years. What was the rate of interest in which he invested his sum ?
Updated On: Oct 10, 2024
- 12\(\%\)
- 12.5\(\%\)
- 6.67\(\%\)
- 8.33\(\%\)
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The Correct Option is D
Solution and Explanation
Let principal be P and rate of interest be r
then \(\frac{P × r × 3}{100}\) \(+\) P = 300 …… (i)
and \(\frac{P × r × 8}{100}\) \(+\) P = 400 …..(ii)
Subtracting (i) from (ii), we get
P × r = 2000
Now from equation (i)
P = Rs.240
and 240 × r = 2000
r = 8.33\(\%\)
So the correct option is (D)
then \(\frac{P × r × 3}{100}\) \(+\) P = 300 …… (i)
and \(\frac{P × r × 8}{100}\) \(+\) P = 400 …..(ii)
Subtracting (i) from (ii), we get
P × r = 2000
Now from equation (i)
P = Rs.240
and 240 × r = 2000
r = 8.33\(\%\)
So the correct option is (D)
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