Multiple choice

At what rate of simple interest will Rs. 4200 amount to Rs. 6216 in a span of 8 years?

  1. 5%

  2. 3%

  3. 6%

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

Simple interest formula: I = PRT. Here, Principal = Rs. 4200, Amount = Rs. 6216, so Interest = Rs. 2016, Time = 8 years. Using the formula: 2016 = 4200 × R × 8. Therefore, R = 2016/(4200×8) = 2016/33600 = 0.06 = 6% per annum. You can verify: 4200 × 0.06 × 8 = Rs. 2016.

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