Simple Interset received by a person in 10 years on a principal of Rs. 9500 is 130 % of the principal . What is the rate of interset (in %) per annum ?

Options

A. 12
B. 13
C. 15
D. 19

Answer

To find the rate of interest per annum, we can follow these steps:

### Step 1: Understand the given information
- Principal (P) = Rs. 9500
- Simple Interest (SI) in 10 years = 130% of Principal

### Step 2: Calculate the Simple Interest
First, we need to calculate the Simple Interest (SI) for 10 years. Since the SI is given as 130% of the principal, we can calculate it as follows:

\[ SI = 130\% \text{ of } P = \frac{130}{100} \times 9500 \]

### Step 3: Calculate the value of SI
Now, let's calculate the value:

\[ SI = 1.3 \times 9500 = 12350 \]

### Step 4: Use the Simple Interest formula to find the rate
The formula for Simple Interest is:

\[ SI = \frac{P \times R \times T}{100} \]

Where:
- SI = Simple Interest
- P = Principal
- R = Rate of interest per annum
- T = Time in years

We know:
- SI = 12350
- P = 9500
- T = 10 years

Substituting the known values into the formula:

\[ 12350 = \frac{9500 \times R \times 10}{100} \]

### Step 5: Solve for R
Rearranging the equation to solve for R:

\[ 12350 = \frac{95000R}{100} \]

Multiplying both sides by 100:

\[ 1235000 = 95000R \]

Now, divide both sides by 95000:

\[ R = \frac{1235000}{95000} \]

Calculating the value:

\[ R = 13 \]

### Conclusion
The rate of interest per annum is **13%**.

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