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Rs. 2,500, when invested for 8 years at a given rate of simple interest per year, amounted to Rs. 3,725 on maturity. What was the rate of simple interest that was paid per annum?
Answer & Solution
Correct Answer:
Option
B
$$\eqalign{
& {\text{Simple interest}} = 3725 - 2500 = 1225 \cr
& {\text{SI}} = \frac{{P \times r \times t}}{{100}} \cr
& 1225 = \frac{{2500 \times r \times 8}}{{100}} \cr
& r = \frac{{49}}{8} \cr
& r = 6.125\% \cr} $$
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