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A sum of money amounts to Rs. 9800 after 5 years and Rs. 12005 after 8 years at the same rate of simple interest. The rate of interest per annum is?

  • A.5%
  • B.8%
  • C.12%
  • D.15%

Answer: C

S.I. for 3 years = (12005 - 9800) = Rs. 2205

S.I. for 5 years = Rs. 2205/3 * 5 = Rs. 3675.

Principal = (9800 - 3675) = Rs. 6125

Hence, rate = (100 * 3675) / (6125 * 5) = 12%

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