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A sum of Rs. 1600 gives a simple interest of Rs. 252 in 2 years and 3 months. The rate of interest per annum is = ?

a) $$5\frac{1}{2}$$ %
b) 8%
c) 7%
d) 6%

Answer: c
Explanation:
$$\eqalign{ & {\text{Time = 2 years 3 months}} \cr & {\text{ = 2 + }}\frac{3}{{12}}{\text{ = }}\frac{9}{2}{\text{ years}} \cr & {\text{P = Rs 1600}} \cr & {\text{T = }}\frac{9}{4}{\text{years}} \cr & {\text{SI = Rs 252}} \cr & {\text{Using formula,}} \cr & 252 = \frac{{1600 \times {\text{R}} \times 9}}{{100}} \cr & 252 = 36{\text{R}} \cr & {\text{R = }}\frac{{252}}{{36}} = 7\% \cr} $$

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