A sum of money amounts to Rs. 9800 after 5 years and Rs. 12005 after 8 years at the same rate of simple interest. The rate of interest per annum is:

5%
8%
12%
15%

Correct Answer: 12%

Explanation:

S.I. for 3 years = Rs. (12005 - 9800) = Rs. 2205.

S.I. for 5 years = Rs.	❨	2205	x 5	❩	= Rs. 3675
		3

∴ Principal = Rs. (9800 - 3675) = Rs. 6125.

Hence, rate =	❨	100 x 3675	❩%	= 12%
		6125 x 5

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