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Prem invested a certain sum of money in a simple interest. It amounts to Rs 300 at the end of 3 years and to Rs 400 at the end of 8 year. What was the rate of interest in which he invested his sum?
  • a)
    12%
  • b)
    24%
  • c)
    6.67%
  • d)
    8.33%
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Prem invested a certain sum of money in a simple interest. It amounts...
Let principal be P and rate of interest be r%
At the end of another 5 years means 3 + 5 = 8 Years.
On subtracting Eq. (i) from Eq. (ii)
∴ p x r = 2,000
240 x r = 2000
r = 8.33%
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Most Upvoted Answer
Prem invested a certain sum of money in a simple interest. It amounts...
Given:
Amount after 3 years = Rs 300
Amount after 8 years = Rs 400

To find: Rate of interest

Let the principal be 'P' and the rate of interest be 'r'.

Using the formula for simple interest, we have:

Amount = Principal + (Principal * rate * time)/100

For the first case, we have:

300 = P + (P * r * 3)/100
Simplifying this equation, we get:
3Pr = 30000 - 100P

For the second case, we have:

400 = P + (P * r * 8)/100
Simplifying this equation, we get:
8Pr = 40000 - 100P

Now, we can solve these two equations simultaneously to find the values of 'P' and 'r'.

Multiplying the first equation by 8 and the second equation by 3, we get:

24Pr = 240000 - 800P
24Pr = 120000 - 300P

Subtracting the second equation from the first, we get:

0 = 120000 - 500P

Solving for 'P', we get:

P = Rs 240

Substituting this value of 'P' in either of the above equations, we can solve for 'r'.

Let's use the first equation:

3Pr = 30000 - 100P
3r = (30000 - 100P)/P
3r = (30000 - 100*240)/240
3r = 500/4
r = 8.33%

Therefore, the rate of interest at which Prem invested his sum was 8.33%.
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Prem invested a certain sum of money in a simple interest. It amounts to Rs 300 at the end of 3 years and to Rs 400 at the end of 8 year. What was the rate of interest in which he invested his sum?a)12%b)24%c)6.67%d)8.33%Correct answer is option 'D'. Can you explain this answer?
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Prem invested a certain sum of money in a simple interest. It amounts to Rs 300 at the end of 3 years and to Rs 400 at the end of 8 year. What was the rate of interest in which he invested his sum?a)12%b)24%c)6.67%d)8.33%Correct answer is option 'D'. Can you explain this answer? for Railways 2024 is part of Railways preparation. The Question and answers have been prepared according to the Railways exam syllabus. Information about Prem invested a certain sum of money in a simple interest. It amounts to Rs 300 at the end of 3 years and to Rs 400 at the end of 8 year. What was the rate of interest in which he invested his sum?a)12%b)24%c)6.67%d)8.33%Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Railways 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Prem invested a certain sum of money in a simple interest. It amounts to Rs 300 at the end of 3 years and to Rs 400 at the end of 8 year. What was the rate of interest in which he invested his sum?a)12%b)24%c)6.67%d)8.33%Correct answer is option 'D'. Can you explain this answer?.
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