A sum of money becomes 3/2 times of itself in 3 years at certain rate of interest. Find the rate of interest?
1. 16\(\frac{2}{3}\)%
2. 11\(\frac{1}{3}\)%
3. 9\(\frac{1}{3}\)%
4. 12\(\frac{1}{3}\)%
1. 16\(\frac{2}{3}\)%
2. 11\(\frac{1}{3}\)%
3. 9\(\frac{1}{3}\)%
4. 12\(\frac{1}{3}\)%
Correct Answer – Option 1 : 16\(\frac{2}{3}\)%
Given:
Amount = 3/2 of the sum
Time = 3 years
Formula used:
Simple interest = (P × R × T)/100
Amount = Principal + Interest
Calculation:
Let the sum of money be P
Amount after 3 years will be 3/2P
Now, by using the formula
3/2P – P = (PR × 3)/100
⇒ R = 50/3 = 16\(\frac{2}{3}\)%
∴ The rate of interest is 16\(\frac{2}{3}\)%.