Multiple choice

Ritesh deposited Rs. 8000 in State Bank of India. He had to pay 10% of the interest of the first year as his college fees, after which Rs. 900 of the interest amount was left. Find the rate percentage at which the interest was paid.

  1. 13.5%

  2. 12.5%

  3. 11.5%

  4. 10.5%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Interest for the first year = 8000 * r / 100 = 80r. Fees = 10% of 80r = 8r. Remaining interest = 80r - 8r = 72r. Given 72r = 900, r = 900 / 72 = 12.5%.

AI explanation

If Rs. 900 represents 90% of the first year's interest, then the total interest earned is 900 * (100 / 90) = 1000. Using the simple interest formula for one year, SI = (P * R) / 100, we substitute the values to get 1000 = (8000 * R) / 100. Solving for the rate gives R = 12.5%.

Keep practicing — related questions