Question

A boy Nitin got a simple interest in 12 years on a sum of Rs. 14000 is 6/7 of the principal. what is the rate of interest per annum?
1. 7.14%
2. 7.18%
3. 7.04%
4. 7.34%

Answer 1

Correct Answer - Option 1 : 7.14%

Given:

Simple interest = 6/7 of Principal

Time = 12 years

Principal = Rs. 14000

Formula used:

Simple Interest = PRT/100

Where, P = Principal, T = Time, R = Rate, A = Amount, S.I = Simple Interest

Calculation:

Simple interest = 6/7 of Principal

S.I/P = 6/7

Time = 12 years

Let Simple Interest and Principal be 6x and 7x

So, 7x = 14000

⇒ x = 2000

And, S.I = 6 × 2000 = Rs. 12000

S.I = PRT/100

12000 = (14000 × R × 12)/100

⇒ R = 50/7 = 7.14%

∴ The rate of interest is 7.14%