1)

A sum of money amounts to Rs. 5,200 in 5 years and to Rs. 5,680 in 7 years at simple interest. The rate of interest per annum is

 


A) 3%

B) 4%

C) 5%

D) 6%

E) 5%

Answer:

Option D

Explanation:

P+S.I. for 5 years =5,200 ---(1)

P+S.I. for 7 years =5,680 ---(2)

(2) - (1) S.I. for 2 years =480

S.I. for 1 year =240

From equation (1)

P+5×240 =5200 P =52001200 = Rs. 4000

R =100×SIP×N =100×2401×4000 = 6%.