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The amount obtained by investing a certa...

The amount obtained by investing a certain sum at `r%` p.a.for 3 years at simple interest is equal to the simple interest on the same sum at the same rate for 13 years. The value of r is

A

8

B

10

C

16

D

12

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem, we need to set up the equations based on the information provided. ### Step-by-Step Solution: 1. **Understanding the Problem**: We know that the amount obtained by investing a certain sum (let's denote it as \( P \)) at \( r\% \) per annum for 3 years is equal to the simple interest earned on the same sum at the same rate for 13 years. 2. **Formulating the Amount for 3 Years**: The formula for the amount \( A \) after \( t \) years at simple interest is given by: \[ A = P + \text{SI} \] Where \( \text{SI} = \frac{P \cdot r \cdot t}{100} \). For 3 years, we have: \[ A = P + \frac{P \cdot r \cdot 3}{100} \] Simplifying this, we get: \[ A = P \left(1 + \frac{3r}{100}\right) \] 3. **Formulating the Simple Interest for 13 Years**: The simple interest for 13 years is: \[ \text{SI} = \frac{P \cdot r \cdot 13}{100} \] 4. **Setting the Equations Equal**: According to the problem, the amount obtained after 3 years is equal to the simple interest earned after 13 years: \[ P \left(1 + \frac{3r}{100}\right) = \frac{P \cdot r \cdot 13}{100} \] 5. **Eliminating \( P \)**: Since \( P \) is common on both sides and is not zero, we can divide both sides by \( P \): \[ 1 + \frac{3r}{100} = \frac{r \cdot 13}{100} \] 6. **Rearranging the Equation**: Now, we will rearrange the equation to isolate \( r \): \[ 1 = \frac{r \cdot 13}{100} - \frac{3r}{100} \] \[ 1 = \frac{10r}{100} \] \[ 1 = \frac{r}{10} \] 7. **Solving for \( r \)**: Multiply both sides by 10: \[ r = 10 \] ### Final Answer: The value of \( r \) is \( 10\% \).
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