A sum of money becomes $$\frac{7}{4}$$ of itself in 6 years at a certain rate of simple interest. Find the rate of interest.

Solution(By Examveda Team)

$$\eqalign{ & {\text{Let}}\,{\text{sum}}\,is\,{\text{Rs}}.\,100, \cr & {\text{Then}}\,{\text{it}}\,{\text{become}}\,\frac{7}{4}\,{\text{times}} \cr & i.e.\,{\text{Rs}}.\,\frac{{700}}{4}\,{\text{in}}\,6\,{\text{years}}. \cr & {\text{Interest}} = {\frac{{700}}{4}} - 100 = Rs.\,\frac{{300}}{4} \cr & {\text{Hence}}, \cr & {\text{Rate}} = \frac{{{\text{Total}}\,{\text{interest}}}}{{{\text{Given}}\,{\text{time}}}} \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\, = \frac{{300}}{4} \times 6 \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\, = 12 {\frac{1}{2}} \% \cr} $$