Multiple choice

A person lends Rs. 1540 for five years and Rs. 1800 for four years. If he gets Rs. 1788 as interest on both amounts, what is the rate of interest?

  1. 10

  2. 12

  3. 15

  4. 16

  5. 20
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Using simple interest formula SI = P×R×T/100. Total interest = 1788. So (1540×R×5/100) + (1800×R×4/100) = 1788. This simplifies to 77R + 72R = 1788, giving 149R = 1788, so R = 1788/149 = 12%. Verify: 1540×12×5/100 = 924, 1800×12×4/100 = 864, total = 1788.

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