Multiple choice

Mr. Abhishek borrowed Rs. $600$ and returned Rs. $856.50$ at the end of $9$ years and $6$ months. What was the simple rate of interest percent per annum he paid?

  1. $4.5\%$ p.a.
  2. $5\%$ p.a.
  3. $6.5\%$ p.a.
  4. $7\%$ p.a.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Simple Interest = Amount - Principal = 856.50 - 600 = 256.50. Time = 9.5 years. SI = (P * R * T) / 100. 256.50 = (600 * R * 9.5) / 100 = 6 * R * 9.5 = 57 * R. R = 256.50 / 57 = 4.5%.

AI explanation

The total interest paid is 856.50 minus 600 = Rs. 256.50. The time of 9 years and 6 months equals 9.5 years, so applying the simple interest formula yields 256.50 = (600 x Rate x 9.5) / 100. Solving this gives 256.50 = 57 x Rate, meaning the Rate is 4.5% per annum.

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