The sum of principal and simple interest of a certain amount of money would be Tk.460 after 3 years from now and Tk. 500 after 5 years from now. What is the total interest rate?

The sum of principal and simple interest of a certain amount of money would be Tk.460 after 3 years from now and Tk. 500 after 5 years from now. What is the total interest rate?

(a) 5%

(b) 12%

(c) 15%

(d) 20%

Answer: 5%

Solution:


(5 – 3) yr = 2 yrs interest = (500 – 460) = 40 tk

1 year interest = 40/2 = 20 tk.

3 year interest = (20 × 3) = 60 tk

Principal amount= (460 – 60) = 400 tk

Interest rate = 60/(400×3) = 0.05 = 5%
The sum of principal and simple interest of a certain amount of money would be Tk.460 after 3 years from now and Tk. 500 after 5 years from now. What is the total interest rate? The sum of principal and simple interest of a certain amount of money would be Tk.460 after 3 years from now and Tk. 500 after 5 years from now. What is the total interest rate? Reviewed by Admin on 9:27 AM Rating: 5

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