A person borrowed some money on simple interest. After 4 years, he returned ??/?? of the money to the lender. What was the rate of interest?
This questions was previously asked in
ssc cgl 2023 pre
25% p.a.
Incorrect Answer10% p.a.
Incorrect Answer15% p.a.
Incorrect AnswerExplanation:
- When borrowing money on simple interest, interest is calculated on the original principal for the entire period.
- The person repaid a certain fraction (??/??) of the borrowed amount after 4 years.
- Simple interest (SI) is calculated using the formula: \( \text{SI} = \text{Principal} \times \text{Rate} \times \text{Time} \), where time is 4 years in this case.
- Determine x/y, so it clearly defines the fraction of total cash returned.
- Calculate which rate allows the borrower to repay this fraction of loan in given time.
- Evaluate options:
- Option 1: 25% p.a.
- Option 2: 10% p.a.
- Option 3: 15% p.a.
- Option 4: 20% p.a.
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By: Parvesh Mehta