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Rs. 12000 invested at a simple interest at the rate of 5% p.a., Rs. 4800 is obtained as interest in certain years. In order to earn Rs. 6400 as interest on Rs. 20,000 in the same number of years, what should be the rate of simple interest?
  • a)
    6%
  • b)
    8%
  • c)
    4%
  • d)
    5%
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Rs. 12000 invested at a simple interest at the rate of 5% p.a., Rs. 48...
GIVEN:
Condition I
Principal = Rs. 12000
Rate of Interest = 5%
SI = Rs. 4800
Condition II
Interest = Rs. 6400
Principal = Rs. 20000
FORMULA USED:
Simple Interest = P × R × T/100
CALCULATION:
For Condition I
4800 = (12000 × 5 × T)/100
T =4800/600
T = 8 years
Similarly,
6400 = (20000 × 8 × R)/100
R = 6400/1600
R = 4% per annum
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Most Upvoted Answer
Rs. 12000 invested at a simple interest at the rate of 5% p.a., Rs. 48...
Given Data:
- Principal amount (P1) = Rs. 12000
- Rate of interest (R1) = 5%
- Interest obtained (I1) = Rs. 4800

Calculating Time (T):
Using the formula for simple interest:
I1 = (P1 * R1 * T) / 100
4800 = (12000 * 5 * T) / 100
T = 4800 * 100 / (12000 * 5)
T = 8 years

Finding Rate of Interest for the Second Scenario:
- Principal amount (P2) = Rs. 20000
- Interest required (I2) = Rs. 6400
- Time (T) = 8 years (from the first scenario)

Calculating Rate of Interest (R2):
Using the formula for simple interest:
I2 = (P2 * R2 * T) / 100
6400 = (20000 * R2 * 8) / 100
R2 = (6400 * 100) / (20000 * 8)
R2 = 32 / 5
R2 = 6.4%
Therefore, the rate of interest required to earn Rs. 6400 as interest on Rs. 20000 in 8 years is 6.4%, which is closest to option C (4%).
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Rs. 12000 invested at a simple interest at the rate of 5% p.a., Rs. 4800 is obtained as interest in certain years. In order to earn Rs. 6400 as interest on Rs. 20,000 in the same number of years, what should be the rate of simple interest?a)6%b)8%c)4%d)5%Correct answer is option 'C'. Can you explain this answer?
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Rs. 12000 invested at a simple interest at the rate of 5% p.a., Rs. 4800 is obtained as interest in certain years. In order to earn Rs. 6400 as interest on Rs. 20,000 in the same number of years, what should be the rate of simple interest?a)6%b)8%c)4%d)5%Correct answer is option 'C'. Can you explain this answer? for Defence 2024 is part of Defence preparation. The Question and answers have been prepared according to the Defence exam syllabus. Information about Rs. 12000 invested at a simple interest at the rate of 5% p.a., Rs. 4800 is obtained as interest in certain years. In order to earn Rs. 6400 as interest on Rs. 20,000 in the same number of years, what should be the rate of simple interest?a)6%b)8%c)4%d)5%Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Defence 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rs. 12000 invested at a simple interest at the rate of 5% p.a., Rs. 4800 is obtained as interest in certain years. In order to earn Rs. 6400 as interest on Rs. 20,000 in the same number of years, what should be the rate of simple interest?a)6%b)8%c)4%d)5%Correct answer is option 'C'. Can you explain this answer?.
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