A sum of Rs. 11500 amounts to Rs. 12880 in 2 years at the rate of simple interest. What is the rate of interest?

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SSC MTS (2022) Official Paper (Held On: 03 May 2023 Shift 1)
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  1. 6% per annum
  2. 4% per annum
  3. 8% per annum
  4. 10% per annum

Answer (Detailed Solution Below)

Option 1 : 6% per annum
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Detailed Solution

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Given:

Principal = Rs. 11500, Amount after 2 years = Rs. 12880

Formula:

Rate = 100 × (SI/PT)

Calculation:

⇒ Rate = 100 × ((12880 - 11500)/(11500 × 2)) = 6% per annum

Hence, the rate of interest is 6% per annum.

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