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### Discussion :: Simple Interest

1. 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:

2.  A. 5% B. 8% C. 12% D. 15%

Explanation :

S.I. for 3 years = Rs. (12005 - 9800) = Rs. 2205.

 S.I. for 5 years = Rs. $$[\frac {2205} { 3 }*5]$$ = Rs. 3675

Principal = Rs. (9800 - 3675) = Rs. 6125.

 Hence, rate = $$[\frac { 100*3675 } { 6125 *5} ]$$ % = 12%

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