Multiple choice

At what rate (percent per annum) does Rs. 500 amount to Rs. 600 in 4 years, interest being simple?

  1. 2%

  2. 3%

  3. 5%

  4. 10%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple Interest = 600 - 500 = 100. Principal = 500, Time = 4 years. Rate = (100*100)/(500*4) = 10000/2000 = 5%.

AI explanation

Using the simple interest formula, the interest earned is Rs. 600 minus Rs. 500, which equals Rs. 100. We calculate the rate by applying the formula R equals (100 times I) divided by (P times T), giving R equals (100 times 100) divided by (500 times 4). Solving this gives R equals 10000 divided by 2000, which is 5% per annum, so the rate is 5%.

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