Question

A sum of money becomes 28 times of itself in 3 years at simple interest, find the rate of interest
1. 750%
2. 900%
3. 600%
4. 450%

Answer 1

Correct Answer - Option 2 : 900%

Given

Amount = 28 Principal

Time = 3 years

Formula used

Simple interest = (principal × rate × time)/100

Amount = Principal + Simple interest

Calculation

Amount = 28 principal

Amount = Principal + (Principal × rate × 3)/100

28 Principal = Principal + (Principal × rate × 3)/100

27 Principal = (principal × rate × 3)/100

(27 × 100)/3 = rate

900% = rate