Q.If the interest on a principal amount becomes \(\cfrac{3}{8}\) of the principal in 5 years, what is the rate of interest? (a) 6% (b) 7.5% (c) 8% (d) 10.5%
Answer: B
Let’s assume the principal amount \((p)=x\) rupees
Interest amount \((I)=\cfrac{3x}{8}\) rupees
Time \((t)=5\) years

\(\therefore\) Rate of interest \((r)= \cfrac{100\times I}{pt} \%\)

\(= \cfrac{100\times \cfrac{3x}{8}}{x\times 5} \%\)

\(= \cfrac{100\times 3x}{x\times 5 \times 8} \%\)

\(= \cfrac{15}{2} \%=7.5\%\)

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