MasteryExams
Quantitative Aptitude • Simple & Compound InterestMedium

A sum of ₹17,000 becomes ₹25,500 in 5 years at simple interest. What is the rate of interest per year?

A. 50%
B. 10%✓ Correct Answer
C. 6.67%
D. 12%

💡 Solution & Explanation

Interest = amount − principal = ₹25,500 − ₹17,000 = ₹8,500. Rate = interest × 100 ÷ (principal × time) = 8,500 × 100 ÷ (17,000 × 5) = 10%. Check: 10% of ₹17,000 is ₹1,700 per year, and 5 years of that is ₹8,500.

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