Multiple choice

Find the rate of interest (p.a.) at which the simple interest on Rs. 1500 in 3 years will be Rs. 180.

  1. 2%

  2. 4%

  3. 8%

  4. 16%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple Interest formula: I = (P * R * T) / 100. 180 = (1500 * R * 3) / 100. 180 = 45 * R. R = 180 / 45 = 4%.

AI explanation

Using the simple interest formula R = (100 * SI) / (P * T), we substitute the given values. R = (100 * 180) / (1500 * 3). This simplifies to 18000 / 4500, which equals 4. The rate of interest is 4 percent.

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