A sum of money amounts to rs 9800


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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

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A₁ = ₹9800   T₁ = 5 yrs
A₂ = ₹12005  T₂ = 8 yrs
Therefore, SI for 3 yrs = 12005 - 9800 = ₹2205
Therefore, SI for 1 yr =  \frac{2205}{3} = ₹735
SI₁ (for 5 yrs)= 735 × 5 = ₹3675
P = A₁ - SI₁ = 9800 - 3675 = ₹6125
Therefore, R p.a. = 100 × SI₁ / P × T₁ = 100 × 3675 / 6125 × 5 = 12%

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