Multiple choice

If the simple interest obtained on a sum of Rs. 24,000 for 5 years is Rs. 7200, what is the rate of interest?

  1. 2%

  2. 3%

  3. 4%

  4. 6%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Simple interest formula is I = (P * R * T) / 100. Plugging in the values: 7200 = (24000 * R * 5) / 100. This simplifies to 7200 = 1200 * R, so R = 7200 / 1200 = 6 percent.

AI explanation

Using the simple interest formula, we have 7200 = (24000 * R * 5) / 100. Solving for R, we get R = (7200 * 100) / (24000 * 5), which simplifies to R = 6. The rate of interest is 6%.

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