Multiple choice

A certain sum of money lent out at simple interest amounts to rupees 1380 in 3 years and 1500 in 5 years. Find the rate percentage per annum.

  1. 3%

  2. 3.5%

  3. 4%

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

The increase from 1380 to 1500 over 2 years is 120, so annual simple interest is 60. Principal is 1380 - (3 × 60) = 1200. Rate = (60/1200) × 100 = 5%. Simple interest adds the same amount each year.

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