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    A certain sum of money on a certain annual rate of interest becomes ₹1008 in 2 years and ₹ 1164 in 312\frac 1221​​ years. Find the sum and the annual
    Question



    A certain sum of money on a certain annual rate of interest becomes ₹1008 in 2 years and ₹ 1164 in 312\frac 12​ years. Find the sum and the annual rate of interest.

    A.

    ₹800, 12%

    B.

    ₹875, 12.5%

    C.

    ₹850, 12%

    D.

    ₹800, 13%

    Correct option is D

    The amount 1008 becomes 1164 in 1.5 years i.e:
    In 3/2 years the interest earned = 1164 - 1008 = 156
    Interest earned in 1 year = 156/(3/2) = 104
    Amount in after two year = Principal + Interest of two year
    1008 = P + (2 × 104)
    P = 1008 - 208 = 800
    S.I = PRT/100
    208 = (800 × r × 2)100
    r = 13%

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