Discussion

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?

Answer: C

\[ \text{SI} = \frac{P \times R \times T}{100} \]

The three years between the two amounts give the yearly interest.

\[ \frac{12005 - 9800}{3} = \frac{2205}{3} = \text{Rs. } 735 \text{ per year} \]

\[ P = 9800 - 5 \times 735 = 9800 - 3675 = \text{Rs. } 6125 \]

\[ R = \frac{735 \times 100}{6125} = 12\% \]

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