On which rate ₹ 500 will become ₹ 605 in 3 years? 

A) 7% 

B) 6% 

C) 12%

D) 9%


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Correct option is (A) 7%

P = 500, T = 3 years. Let rate of interest be R

Amount after 3 years = P + S.I.

= P + \(\frac{PRT}{100}\)

\(=500+\frac{500\times R\times3}{100}\)

= 500 + 15R

Given that amount after 3 years is Rs 605.

\(\therefore\) 500 + 15R = 605

\(\Rightarrow\) 15R = 605 - 500 = 105

\(\Rightarrow\) R = \(\frac{105}{15}\) = 7%

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Correct option is  A) 7%

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