Multiple choice

Simple interest received by a person in 10 years on a principal of Rs. 9500 is 130% of the principal. What is the rate of interest (in %) per annum?

  1. 12

  2. 13

  3. 15

  4. 19
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B Correct answer
Explanation

Simple interest is calculated as (P * R * T) / 100. We are given that SI = 1.3 * P, T = 10, and P = 9500. Substituting these into the formula, 1.3 * P = (P * R * 10) / 100, which simplifies to 1.3 = R / 10. Thus, R = 13%.

AI explanation

The simple interest is 130% of the principal of Rs. 9500, which calculates to 0.13 times 9500, giving an interest of Rs. 12350. Using the simple interest formula, Interest equals Principal times Rate times Time divided by 100. Substituting the known values gives 12350 equals 9500 times Rate times 10 divided by 100. Solving for the rate, Rate equals 12350 times 100 divided by 95000, which results in 13.

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