Verified answer

A sum of Rs. 1600 gives a simple interest of Rs. 252 in 2 years and ,8 months. The rate of interest per annum is:

A) \( \Large 5\frac{1}{2} \)%

B) 8 %

C) 7 %

D) 6 %

Correct Answer:

C) 7 %

Description for Correct answer:

Time = 2years 3 months

=\( \Large2+\frac{3}{12} =\frac{9}{4} \)years

We know \( \Large SI=\frac{P \times R \times T}{100} \)

P=Rs.1600,T=\( \Large \frac{9}{4} \)years,SI=Rs.252

Put values in the above formula

=\( \Large 252=\frac{1600 \times R \times 9}{4 \times 100} \)

=252=36R

=\( \Large R=\frac{252}{36}=7 \)%