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On simple interest an amount becomes Rs. 812 in two years and Rs. 924 in four years. What is the rate of interest on that amount?

Correct Answer: 8%

Explanation:

We know, 


S.I = PTR/100 where P = principal amount, T = time, R = rate of interest


Here in the given data,


Interest for two years S.I = 924 - 812 = Rs. 112


Now, Principal amount P = 812 - 112 = Rs. 700 


Now,


R = S.I x 100/PT


R = 112 x 100/700 x 2


R = 11200/1400


R = 8%


 


Hence, the rate of interest R = 8%.


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