Question

If the total simple interest on a sum of Rs. 1,400 for 4 years at rate of interest x% p.a. and on the same sum for two years at the same rate, is Rs. 672, then the value of x is:
1. 6%
2. 10%
3. 9%
4. 8%

Answer 1

Correct Answer - Option 4 : 8%

Given:

simple interest= Rs.1,400

time = 4 years

Formula Used:

SI = P × T × R /100

Calculation:

Let the Rate = x

We know that,

SI = P × T × R /100

⇒ 672 = 1400 × 4 × x /100 + 1400 × 2 × x /100

⇒ 672 = 56x + 28x 

⇒ 672 = 84x

⇒ x = 672/84

⇒ x = 8

∴ Rate = 8%