A sum deposited at simple interest per annum amounts to Rs. 5200 in 5 years and Rs. 5680 in 7 years. Find the rate of interest per annum.

A6.5 percent

B6 percent ✓ Correct

C5 percent

D5.5 percent

Correct answer: (B) 6 percent

Explanation

The rate is 6 percent per annum.

interest for 2 years = 5680 - 5200 = 480.

interest per year = 240.

principal = 5200 - 5 x 240 = 4000.

rate = (240 / 4000) x 100 = 6 percent.

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