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Question

The simple interest accrued in two years on a principal of 24,000 is one-eighth the principal. What is the rate of simple interest pcpa?

  • 5%
  • 4.5%
  • 6.25%
  • 7.25%
  • None of the Above
Answer- C

Let the rate of simple interest be X say

(24000×X×2)/100 = (24000/8)

=>           X = 6.25%


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