Question

Prem invested a certain sum of money in a simple interest bond whose value grew to Rs 300 at the end of 3 years and to Rs 400 at the end of another 5 years. What was the rate of interest in which he invested his sum ?

• A. 12$\%$
• B. 12.5$\%$
• C. 6.67$\%$
• D. 8.33$\%$

Answer 1

Answer: (D)

8.33$\%$

Answer 2

Let principal be P and rate of interest be r
then $\frac{P × r × 3}{100}$ $+$ P = 300 …… (i)

and $\frac{P × r × 8}{100}$ $+$ P = 400 …..(ii)
Subtracting (i) from (ii), we get
P × r = 2000
Now from equation (i)
P = Rs.240
and 240 × r = 2000
r = 8.33$\%$
So the correct option is (D)