Multiple choice

A moneylender charges Rs. 54 as interest for every six months on a principal of Rs. 450. What is his rate of interest per annum?

  1. 18%

  2. 20%

  3. 24%

  4. 25%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Interest = 54 for 6 months on 450. Annual interest = 54 * 2 = 108. Rate = (108 / 450) * 100 = 24%.

AI explanation

Using the simple interest formula Rate equals (100 multiplied by Interest) divided by (Principal multiplied by Time), we substitute the six-month interest of Rs. 54, principal of Rs. 450, and time of 0.5 years. The calculation is (100 multiplied by 54) divided by (450 multiplied by 0.5), which simplifies to 5400 divided by 225, resulting in an annual rate of 24%.

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