Multiple choice

Calculate the rate of interest if a sum of Rs. 800 amounts to Rs. 1280 in 30 years at simple interest?

  1. 4%

  2. 3%

  3. 2%

  4. 1%

  5. 0.75%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple interest I = A - P = 1280 - 800 = 480. Using I = (P * R * T) / 100, we have 480 = (800 * R * 30) / 100, which simplifies to 480 = 240 * R, so R = 2%.

AI explanation

First, find the total simple interest paid by subtracting the principal from the amount, which is 1280 - 800 = Rs. 480. Using the simple interest formula, Rate = (100 * Simple Interest) / (Principal * Time). Substituting the known values gives Rate = (100 * 480) / (800 * 30) = 48000 / 24000 = 2%.

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