Asked by Kaur

A certain sum was invested on simple interest for a period of seven years. During the period of the sixth and the seventh years combined, the interest earned was rs. 292. If the maturity amount is rs. 3,942, then what is the rate percentage of the interest?
A) 6.25%
B) 2.5%
C) 2%
D) 5%

Answers

Answered by oobleck
This is just a problem involving geometric series. So use your usual formulas.
p(1+r)^7 = 3942
p((1+r)^6 - 1) + p((1+r)^7) - 1) = 292
Now just solve for r as usual
Answered by oobleck
OOOH My BAD. I missed where it said simple interest
You must have seen my mistake - your answer of 5% is correct.
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