Multiple choice

On investing Rs. 100 for three years, one earns a simple interest of Rs. 18. The rate of interest per annum is

  1. 8%

  2. 5%

  3. 6%

  4. 18%

  5. 10%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple interest = (P * R * T) / 100. 18 = (100 * R * 3) / 100. 18 = 3R, so R = 6%.

AI explanation

Using the simple interest formula S.I. = (P times R times T)/100, we substitute the given values to get 18 = (100 times R times 3)/100. This simplifies to 18 = 3R. Dividing both sides by 3 gives a rate of interest of 6% per annum.

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