Question
At what percentage should capital be placed so that in 8 months it produces interest equivalent to 7/50 of the capital? a) 27% b) 35% c) 14% d) 21% e) 36%
Answers
GPT 3.5
Let x be the percentage of capital to be placed.
Interest = Principal x Rate x Time
Let the capital be 100.
Given that interest equivalent to 7/50 of the capital is produced in 8 months.
Interest = 7/50 x 100 = 14
Rate = x/100
Time = 8/12 = 2/3 years
Putting these values in the formula:
14 = 100 x (x/100) x (2/3)
14 = 2x/3
42 = 2x
x = 21
Therefore, the percentage of capital to be placed is 21% which corresponds to option d).
Interest = Principal x Rate x Time
Let the capital be 100.
Given that interest equivalent to 7/50 of the capital is produced in 8 months.
Interest = 7/50 x 100 = 14
Rate = x/100
Time = 8/12 = 2/3 years
Putting these values in the formula:
14 = 100 x (x/100) x (2/3)
14 = 2x/3
42 = 2x
x = 21
Therefore, the percentage of capital to be placed is 21% which corresponds to option d).