Multiple choice

Vishal lent Rs. 1,500 to Sandeep for 4 years and Rs. 6,000 to Deepak for 2 years. If he receives Rs. 900 as simple interest altogether, the rate of interest is

  1. 5%
  2. $5\frac {1}{2}$%

  3. 6%
  4. $4\frac {1}{2}$%
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A Correct answer
Explanation

Using the simple interest formula I = (P*R*T)/100, we have 900 = (1500*R*4)/100 + (6000*R*2)/100. This simplifies to 900 = 60R + 120R, which means 180R = 900, so R = 5%.

AI explanation

Using the simple interest formula, the total interest earned is the sum of the interest from both loans: 900 = (1500 * R * 4) / 100 + (6000 * R * 2) / 100. This simplifies to 900 = 60R + 120R, which equals 180R. Solving for the rate gives R = 900 / 180 = 5%. The rate of interest is 5%.

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