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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

5%
8%
12%
18%
Explanation:

S.I. for 3 years = Rs. (12005 - 9800) = Rs. 2205. S.I. for 5 years = Rs. (2205/3) x 5 = Rs. 3675 Principal = Rs. (9800 - 3675) = Rs. 6125. Hence, rate = (100 x 3675)/( 6125 x 5) % = 12%

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