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Test Index
Simple Interest Practice Test 1
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© examsnet.com
Question : 2
Total: 40
The rate of interest per annum at which the total simple interest of a certain capital for one year is equal to the total simple interest of the same capital at the rate of 5% per annum for 2 years, is:
5
2
%
10%
25%
12.5%
Validate
Solution:
Let the sum of money = Rs 1,000
Rate = 5%
Time = 2 years
S
I
=
P
×
R
×
T
100
=
100
×
5
×
2
100
= Rs 100
Again the sum of money and same simple interest is taken.
Time = 1 year
Rate = R
S
I
=
P
×
R
×
T
100
⇒
100
=
1000
×
R
×
1
100
⇒
R
=
100
×
100
1000
×
1
=
10
%
© examsnet.com
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