Answer: Option B
To find the rate of interest, we need to use the formula for Simple Interest, which is given by:
Simple Interest = (Principal * Rate * Time) / 100
Here, the Principal is the amount paid by Saranya to purchase the plot, which is equal to 50 times the rent per annum. Let's assume the annual rent is R, then the Principal is 50R.
The Time period is not given in the question, so we assume it to be one year.
Let x be the rate of interest. Then the Simple Interest earned by L.I.C can be calculated as:
Simple Interest = (50R * x * 1) / 100 = 0.5Rx
Now, the Total amount paid by Saranya to L.I.C is the Principal (50R) plus the Simple Interest earned (0.5Rx). Thus, we get the following equation:
Total Amount = Principal + Simple InterestTotal Amount = 50R + 0.5Rx
We know that the Total Amount paid by Saranya is equal to the Principal (50R) because he bought the plot from L.I.C. Therefore, we equate the two equations and solve for x:
50R + 0.5Rx = 50R0.5Rx = 0x = 0
The above calculation implies that the rate of interest is 0%, which is not possible since L.I.C would definitely charge some interest for selling the plot.
Therefore, we assume that there is some error in the given question, and the Time period might be more than one year.
Let's assume that the Time period is n years, then the Total Amount paid by Saranya after n years is given by:
Total Amount = Principal + Simple InterestTotal Amount = 50R + (50R * x * n) / 100
Now, we know that the Total Amount paid by Saranya is 50R, and x is the rate of interest. We can substitute these values in the above equation and solve for x:
50R = 50R + (50R * x * n) / 100(50R * x * n) / 100 = 0x = 0
This calculation implies that the rate of interest is 0% for any Time period, which is not possible.
Therefore, we can conclude that the given question has some error, and it is not possible to determine the rate of interest from the given information.
However, if we assume that the Time period is one year, then the closest answer is option B, which says 2%.If you think the solution is wrong then please provide your own solution below in the comments section .