Multiple choice

Mr. Sharma takes loan of Rs. $25000$ and repays an amount of Rs. $31000$ at the end of $2$ years. What is the rate of simple interest at which he repays the loan?

  1. $\;8\%$ p.a.
  2. $\;6\%$ p.a.
  3. $\;12\%$ p.a.
  4. $\;9\% $ p.a.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple Interest = 31000 - 25000 = 6000. SI = (P * R * T) / 100 => 6000 = (25000 * R * 2) / 100 => 6000 = 500 * R => R = 12%.

AI explanation

The simple interest paid is Rs. 31000 minus Rs. 25000, which equals Rs. 6000. Using the formula for simple interest, 6000 equals (25000 times rate times 2) divided by 100. Solving for the rate gives 50 times rate equals 6000, so the rate is 12% per annum.

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