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A sum of money at simple interest amount...

A sum of money at simple interest amounts to Rs.1,012 in 2`1/2` years and to Rs. 1,067.20 in 4 years. The rate of interest per annum is :

A

2.5%

B

3%

C

4%

D

5%

Text Solution

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The correct Answer is:
To solve the problem, we need to find the rate of interest per annum given the amounts at two different times. 1. **Identify the given values**: - Amount after 2.5 years (A1) = Rs. 1,012 - Amount after 4 years (A2) = Rs. 1,067.20 - Time for A1 (T1) = 2.5 years - Time for A2 (T2) = 4 years 2. **Calculate the difference in amounts**: - The difference in amounts (A2 - A1) gives us the interest earned between 2.5 years and 4 years. \[ \text{Interest} = A2 - A1 = 1,067.20 - 1,012 = Rs. 55.20 \] 3. **Calculate the time difference**: - The time difference between the two amounts is: \[ T2 - T1 = 4 - 2.5 = 1.5 \text{ years} \] 4. **Calculate the rate of interest**: - The interest earned in 1.5 years is Rs. 55.20. To find the annual interest, we can use the formula for simple interest: \[ \text{Simple Interest} = \frac{P \times R \times T}{100} \] Rearranging the formula to find R (rate of interest): \[ R = \frac{\text{Interest} \times 100}{P \times T} \] However, we need to find the principal (P) first. 5. **Find the principal using the first amount**: - Using the first amount (A1) after 2.5 years: \[ A1 = P + \text{Interest for 2.5 years} \] Let the interest for 2.5 years be \( I_1 \): \[ I_1 = \frac{P \times R \times 2.5}{100} \] Thus, \[ 1,012 = P + \frac{P \times R \times 2.5}{100} \] 6. **Using the second amount**: - Similarly, for the second amount (A2): \[ A2 = P + \text{Interest for 4 years} \] Let the interest for 4 years be \( I_2 \): \[ I_2 = \frac{P \times R \times 4}{100} \] Thus, \[ 1,067.20 = P + \frac{P \times R \times 4}{100} \] 7. **Set up equations**: - Now we have two equations: \[ 1. \quad 1,012 = P + \frac{P \times R \times 2.5}{100} \quad (1) \] \[ 2. \quad 1,067.20 = P + \frac{P \times R \times 4}{100} \quad (2) \] 8. **Subtract equation (1) from equation (2)**: \[ (1,067.20 - 1,012) = \left(\frac{P \times R \times 4}{100} - \frac{P \times R \times 2.5}{100}\right) \] \[ 55.20 = \frac{P \times R \times (4 - 2.5)}{100} \] \[ 55.20 = \frac{P \times R \times 1.5}{100} \] \[ P \times R = \frac{55.20 \times 100}{1.5} = 3680 \] 9. **Substituting back to find R**: - Substitute \( P \) in terms of \( R \) into either equation to find the rate. For simplicity, we can assume a value for \( P \) or solve for \( R \) directly. - We can use the first equation to express \( P \): \[ P = 1,012 - \frac{P \times R \times 2.5}{100} \] Substitute \( P \times R = 3680 \): \[ P = 1,012 - \frac{3680 \times 2.5}{100} \] \[ P = 1,012 - 92 \] \[ P = 920 \] 10. **Find the rate**: - Now substitute \( P \) back into \( P \times R = 3680 \): \[ 920 \times R = 3680 \] \[ R = \frac{3680}{920} = 4 \] Thus, the rate of interest per annum is \( 4\% \). ### Final Answer: The rate of interest per annum is **4%**.
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