Multiple choice

A sum of Rs. 3000 becomes Rs. 6000 when invested in a scheme of simple interest. If the amual rate of interest and the number of years for which the sum was invested are same, then what is the annual rate of interest?

  1. 5 percent

  2. 20 percent

  3. 10 percent

  4. 15 percent
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For simple interest: Amount = Principal + (P×R×T)/100. Given P=3000, Amount=6000, so Interest=3000. Since R=T (rate equals time), we have 3000 = (3000×R×R)/100, which gives R²=100, so R=10%. Checking: 3000 + (3000×10×10)/100 = 3000 + 3000 = 6000.

Keep practicing — related questions