Multiple choice

At what rate of interest per annum will S.I. on Rs. 1000 in 4 years be Rs. 200?

  1. 10%

  2. 8%

  3. 7%

  4. 5%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Simple Interest (SI) = (P * R * T) / 100. 200 = (1000 * R * 4) / 100. 200 = 40 * R. R = 200 / 40 = 5%.

AI explanation

Using the simple interest formula, SI equals P times R times T divided by 100. We substitute the given values: 200 equals 1000 times R times 4 divided by 100. This simplifies to 200 equals 40 times R, so R equals 5 percent.

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