Maths · Arithmetic and Geometric progressions

A sum of money lent at simple interest amounts to in 2 years and Rs 4160 in 5 ye

A sum of money lent at simple interest amounts to \( R s 3224 \) in 2 years and Rs 4160 in 5 years. Find the sum and the rate of interest.

  • A. \( R s .2500 \)
  • B. \( R s .2000 \)
  • C. \( R s .2600 \)
  • D. \( R s .1600 \)

Step-by-step solution

Let principal P and rate R. Amount after 2 years: P(1+2R/100)=3224, after 5 years: P(1+5R/100)=4160. Subtract to get 3PR/100=936 => PR=31200. Substitute into first: P+2*31200/100=3224 => P=2600. Then R=31200/2600=12%.
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