Multiple choice

A sum of Rs. 26500 amounts to Rs. 31500 in 5 years at simple interest. What is the rate of interest?

  1. 4.3%

  2. 5.6%

  3. 3.8%

  4. 9.7%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple Interest = Amount - Principal = Rs. 31500 - Rs. 26500 = Rs. 5000. Using SI = P×R×T/100: 5000 = 26500 × R × 5 / 100. Solving: R = 5000 × 100 / (26500 × 5) = 500000 / 132500 ≈ 3.77%, which rounds to 3.8%. Always find interest amount first.

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