Discussion of Question with ID = 033 under Simple-Interest

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Question

Mr. X puts an amount of Rs. 2600 in a simple interest scheme. If he gets a total amount of Rs. 3770 after 5 months, what is the rate of interest?

A

${3/4}$% p.a.

B

9% p.a.

C

${11/12}$% p.a.

D

1% p.a.

Soln.
Ans: a

The interest is I = 3770 - 2600 = 1170. So R = $(I × 100)/(T × P)$. Solving, we get R = $(1170 × 100)/(5 × 2600)$ = 9% per month, which is ${3/4}$% per annum. Please note that since the time is in months the rate is also p.m.


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