Multiple choice

Jamwal took a loan of Rs. 5,300 from HDFC with simple interest for as many years as the rate of interest. If he paid Rs. 848 as interest at the end of the loan period, then what was the rate of interest?

  1. 3%

  2. 4%

  3. 5%

  4. 6%

  5. 7%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple Interest = (P * R * T) / 100. Given P = 5300, SI = 848, and R = T. 848 = (5300 * R * R) / 100. 848 = 53 * R^2. R^2 = 848 / 53 = 16. R = 4.

AI explanation

Using the simple interest formula where interest equals principal multiplied by rate multiplied by time divided by 100, we substitute the time with the rate to get 848 equals 5300 multiplied by the rate squared divided by 100. This simplifies to 8400 equals 53 multiplied by the rate squared, which does not yield the provided answer; solving correctly, 84800 divided by 5300 equals 16, making the rate squared equal to 16, and therefore the rate of interest is 4 percent.

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