Multiple choice

Amount of simple interest accrued on an amount of Rs $28500$ in seven years is Rs $23940$. What is the rate of interest p.a. ?

  1. $10.5$
  2. $12.5$
  3. $11$
  4. $12$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Simple interest formula is I = (P*R*T)/100. Plugging in the values: 23940 = (28500*R*7)/100. This simplifies to 23940 = 1995*R, so R = 23940/1995 = 12.

AI explanation

Using the simple interest formula, Rate = (100 * Simple Interest) / (Principal * Time). Substituting the given values, Rate = (100 * 23940) / (28500 * 7). This simplifies to 2394000 / 199500, which equals 12. The rate of interest is 12% per annum.

Keep practicing — related questions