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A sum of money becomes 7/4 of itself in 6 years at a certain rate of simple interest. Find the rate of interest.
  • a)
    12%
  • b)
    12.5%
  • c)
    8%
  • d)
    14%
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
A sum of money becomes 7/4 of itself in 6 years at a certain rate of ...
Let sctm be x
T = 6 Years , R = ?
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A sum of money becomes 7/4 of itself in 6 years at a certain rate of ...
Given, the sum of money becomes 7/4 of itself in 6 years at a certain rate of simple interest.

Let the sum of money be 'P' and the rate of interest be 'R'.

We know that,

Simple Interest (S.I.) = P*R*T/100

where T is the time period in years.

According to the given condition,

P + S.I. = 7/4 * P

=> P + P*R*6/100 = 7/4 * P

=> 24 PR = 3P

=> R = 3/24 = 1/8 = 0.125

Therefore, the rate of interest is 12.5%.

Hence, option (B) is the correct answer.
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A sum of money becomes 7/4 of itself in 6 years at a certain rate of simple interest. Find the rate of interest.a)12%b)12.5%c)8%d)14%Correct answer is option 'B'. Can you explain this answer?
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