If Rs.3,750 amount to Rs.4,620 in 3 years at simple interest, then find the rate of interest.
- $\displaystyle 7\frac{11}{15}$%
- $\displaystyle 8\frac{11}{15}$%
- $\displaystyle 6\frac{11}{15}$%
- $\displaystyle 5\frac{11}{15}$%
Reveal answer
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A
Correct answer
Explanation
Simple interest is calculated as SI = A - P = 4620 - 3750 = 870. Using the formula SI = (P * R * T) / 100, we get 870 = (3750 * R * 3) / 100. Solving for R gives R = 87000 / 11250, which simplifies to 7.733 or 7 11/15 percent.
AI explanation
The simple interest earned is the final amount minus the principal, so 4620 minus 3750 equals Rs. 870. Using the simple interest formula, Rate equals Simple Interest multiplied by 100 divided by (Principal multiplied by Time). Substituting the known values gives Rate equals (870 times 100) divided by (3750 times 3), which simplifies to 87000 divided by 11250. Performing the division gives 116/15, which is 7 11/15%.