₹2,500, when invested for 8 years at a given rate of simple interest per year, amounted to ₹3,725 on maturity. What was the rate of simple interest that was paid per annum?

Question

Question

This question was previously asked in

SSC CGL 2022 Tier-I Official Paper (Held On : 01 Dec 2022 Shift 1)

Answer 1

Given:

₹2,500, when invested for 8 years at a given rate of simple interest per year, amounted to ₹3,725 on maturity.

Concept used:

Simple Interest, SI = (P × R × T)/100

Amount = P + SI

where

P = Principal amount

R = Rate of interest per year

T = Time in years

Calculation:

Let the rate of interest be R%.

According to the concept,

\(\frac {2500 \times R \times 8}{100} = 3725 - 2500\)

⇒ \(R = \frac {1225\times 100}{2500 \times 8}\)

⇒ R = 6.125%

∴ The rate of interest was 6.125%.

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