Electrical Engineering (EE) Exam > Electrical Engineering (EE) Questions > A certain sum of money is invested for one ye...
Start Learning for Free
A certain sum of money is invested for one year at a certain rate of simple interest. If the rate of interest is 3% higher, then the interest earned will be 25% more than the interest earned earlier. What is the earlier rate of interest ?
- a)4% p.a.
- b)6% p.a.
- c)8% p.a.
- d)12% p.a.
Correct answer is option 'D'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
A certain sum of money is invested for one year at a certain rate of s...
Let 
be the rate of interest:
View all questions of this test
be the rate of interest: r = 12% per annum
Most Upvoted Answer
A certain sum of money is invested for one year at a certain rate of s...
To solve this problem, let's assume the initial rate of interest is 'x' percent.
Given that the rate of interest is increased by 3%, the new rate of interest will be (x + 3) percent.
According to the problem, the interest earned at the new rate is 25% more than the interest earned earlier.
Let's denote the initial sum of money invested as 'P'.
1. Calculate the initial interest earned:
The formula for calculating simple interest is:
Interest = (Principal * Rate * Time) / 100
So, the interest earned at the initial rate of interest 'x' is:
Interest1 = (P * x * 1) / 100 = Px/100
2. Calculate the interest earned at the increased rate:
The interest earned at the increased rate of interest (x + 3) is:
Interest2 = (P * (x + 3) * 1) / 100 = P(x + 3)/100
3. According to the problem, the interest earned at the increased rate is 25% more than the interest earned earlier.
Mathematically, this can be expressed as:
Interest2 = Interest1 + (25/100) * Interest1
Substituting the values of Interest1 and Interest2, we get:
P(x + 3)/100 = Px/100 + (25/100) * Px/100
Simplifying the equation further:
P(x + 3) = Px + (25/100) * Px
Px + 3P = Px + (25/100) * Px
3P = (25/100) * Px
3P = (1/4) * Px
Canceling out Px from both sides of the equation:
3 = 1/4
This equation is not possible. Hence, our assumption that the initial rate of interest is 'x' percent is incorrect.
Therefore, the initial rate of interest must be 12% p.a. (Option D) for the equation to hold true.
Given that the rate of interest is increased by 3%, the new rate of interest will be (x + 3) percent.
According to the problem, the interest earned at the new rate is 25% more than the interest earned earlier.
Let's denote the initial sum of money invested as 'P'.
1. Calculate the initial interest earned:
The formula for calculating simple interest is:
Interest = (Principal * Rate * Time) / 100
So, the interest earned at the initial rate of interest 'x' is:
Interest1 = (P * x * 1) / 100 = Px/100
2. Calculate the interest earned at the increased rate:
The interest earned at the increased rate of interest (x + 3) is:
Interest2 = (P * (x + 3) * 1) / 100 = P(x + 3)/100
3. According to the problem, the interest earned at the increased rate is 25% more than the interest earned earlier.
Mathematically, this can be expressed as:
Interest2 = Interest1 + (25/100) * Interest1
Substituting the values of Interest1 and Interest2, we get:
P(x + 3)/100 = Px/100 + (25/100) * Px/100
Simplifying the equation further:
P(x + 3) = Px + (25/100) * Px
Px + 3P = Px + (25/100) * Px
3P = (25/100) * Px
3P = (1/4) * Px
Canceling out Px from both sides of the equation:
3 = 1/4
This equation is not possible. Hence, our assumption that the initial rate of interest is 'x' percent is incorrect.
Therefore, the initial rate of interest must be 12% p.a. (Option D) for the equation to hold true.
Attention Electrical Engineering (EE) Students!
To make sure you are not studying endlessly, EduRev has designed Electrical Engineering (EE) study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Electrical Engineering (EE).
|
Explore Courses for Electrical Engineering (EE) exam
|
|
Top Courses for Electrical Engineering (EE)View all
A certain sum of money is invested for one year at a certain rate of simple interest. If the rate of interest is 3% higher, then the interest earned will be 25% more than the interest earned earlier. What is the earlier rate of interest ?a)4% p.a.b)6% p.a.c)8% p.a.d)12% p.a.Correct answer is option 'D'. Can you explain this answer?
Question Description
A certain sum of money is invested for one year at a certain rate of simple interest. If the rate of interest is 3% higher, then the interest earned will be 25% more than the interest earned earlier. What is the earlier rate of interest ?a)4% p.a.b)6% p.a.c)8% p.a.d)12% p.a.Correct answer is option 'D'. Can you explain this answer? for Electrical Engineering (EE) 2024 is part of Electrical Engineering (EE) preparation. The Question and answers have been prepared according to the Electrical Engineering (EE) exam syllabus. Information about A certain sum of money is invested for one year at a certain rate of simple interest. If the rate of interest is 3% higher, then the interest earned will be 25% more than the interest earned earlier. What is the earlier rate of interest ?a)4% p.a.b)6% p.a.c)8% p.a.d)12% p.a.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Electrical Engineering (EE) 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A certain sum of money is invested for one year at a certain rate of simple interest. If the rate of interest is 3% higher, then the interest earned will be 25% more than the interest earned earlier. What is the earlier rate of interest ?a)4% p.a.b)6% p.a.c)8% p.a.d)12% p.a.Correct answer is option 'D'. Can you explain this answer?.
A certain sum of money is invested for one year at a certain rate of simple interest. If the rate of interest is 3% higher, then the interest earned will be 25% more than the interest earned earlier. What is the earlier rate of interest ?a)4% p.a.b)6% p.a.c)8% p.a.d)12% p.a.Correct answer is option 'D'. Can you explain this answer? for Electrical Engineering (EE) 2024 is part of Electrical Engineering (EE) preparation. The Question and answers have been prepared according to the Electrical Engineering (EE) exam syllabus. Information about A certain sum of money is invested for one year at a certain rate of simple interest. If the rate of interest is 3% higher, then the interest earned will be 25% more than the interest earned earlier. What is the earlier rate of interest ?a)4% p.a.b)6% p.a.c)8% p.a.d)12% p.a.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Electrical Engineering (EE) 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A certain sum of money is invested for one year at a certain rate of simple interest. If the rate of interest is 3% higher, then the interest earned will be 25% more than the interest earned earlier. What is the earlier rate of interest ?a)4% p.a.b)6% p.a.c)8% p.a.d)12% p.a.Correct answer is option 'D'. Can you explain this answer?.
Solutions for A certain sum of money is invested for one year at a certain rate of simple interest. If the rate of interest is 3% higher, then the interest earned will be 25% more than the interest earned earlier. What is the earlier rate of interest ?a)4% p.a.b)6% p.a.c)8% p.a.d)12% p.a.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Electrical Engineering (EE).
Download more important topics, notes, lectures and mock test series for Electrical Engineering (EE) Exam by signing up for free.
Here you can find the meaning of A certain sum of money is invested for one year at a certain rate of simple interest. If the rate of interest is 3% higher, then the interest earned will be 25% more than the interest earned earlier. What is the earlier rate of interest ?a)4% p.a.b)6% p.a.c)8% p.a.d)12% p.a.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A certain sum of money is invested for one year at a certain rate of simple interest. If the rate of interest is 3% higher, then the interest earned will be 25% more than the interest earned earlier. What is the earlier rate of interest ?a)4% p.a.b)6% p.a.c)8% p.a.d)12% p.a.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for A certain sum of money is invested for one year at a certain rate of simple interest. If the rate of interest is 3% higher, then the interest earned will be 25% more than the interest earned earlier. What is the earlier rate of interest ?a)4% p.a.b)6% p.a.c)8% p.a.d)12% p.a.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of A certain sum of money is invested for one year at a certain rate of simple interest. If the rate of interest is 3% higher, then the interest earned will be 25% more than the interest earned earlier. What is the earlier rate of interest ?a)4% p.a.b)6% p.a.c)8% p.a.d)12% p.a.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A certain sum of money is invested for one year at a certain rate of simple interest. If the rate of interest is 3% higher, then the interest earned will be 25% more than the interest earned earlier. What is the earlier rate of interest ?a)4% p.a.b)6% p.a.c)8% p.a.d)12% p.a.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice Electrical Engineering (EE) tests.
|
|
Explore Courses for Electrical Engineering (EE) exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup