Multiple choice

Dinesh Patel is a businessman. He gives loan to the needy, but charges good amount of interest. Jitesh took a loan of Rs. 1,50,000 from Dinesh. The amount of simple interest charged by Dinesh is for as many years as the rate of interest. If Jitesh paid Rs. 96,000 as interest at the end of the loan period, what was the rate of interest?

  1. 32%

  2. 8%

  3. 10%

  4. 0.8%

  5. 16%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest formula: I = (P * R * T) / 100. Given I = 96000, P = 150000, and R = T. So 96000 = (150000 * R * R) / 100. 960 = 1500 * R^2 / 100 => 960 = 15 * R^2 => R^2 = 64 => R = 8%.

AI explanation

Using the simple interest formula where the time in years equals the rate percentage, we have 96000 equals 150000 multiplied by the rate multiplied by the rate divided by 100. This simplifies to the rate squared equals 9600000 divided by 15000, so the rate squared equals 64. Taking the square root gives a rate of 8 percent.

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