Mathematics
NULL
Medium
Question
A sum amounts to Rs 9800 in 5 years and Rs 12005 in 8 years at the same simple interest rate. What is the annual rate?
A
0.05
B
0.08
C
0.12
✓ Official correct answer
D
0.15
Community credibility
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A
0.05
No member explanations yet for this option.
B
0.08
No member explanations yet for this option.
C
0.12
No member explanations yet for this option.
D
0.15
No member explanations yet for this option.
Explanation
Interest over the last 3 years = 12005 − 9800 = 2205, so yearly interest = 735. Principal = 9800 − 5×735 = 6125. Rate = 735/6125 = 12% (option 0.12).