Multiple choice

At what rate of interest will a sum of Rs. 4,500 amount to Rs. 6,525 at simple interest for 5 years?

  1. 8%

  2. 9%

  3. 10%

  4. 12%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple Interest = (Principal × Rate × Time) / 100. Here, Interest = 6525 - 4500 = Rs. 2025. So, 2025 = (4500 × R × 5) / 100. Solving: R = (2025 × 100) / (4500 × 5) = 202500 / 22500 = 9%. The rate of interest is 9% per annum.

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