Multiple choice

What rate of interest gives Rs. 720 as simple interest on a sum of Rs. 12,000 in 2 years?

  1. 2%

  2. 3%

  3. 5%

  4. 6%

  5. a
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple Interest formula: SI = (P * R * T) / 100. 720 = (12000 * R * 2) / 100. 720 = 240 * R. R = 720 / 240 = 3%.

AI explanation

Using the simple interest formula, Rate equals Simple Interest multiplied by 100, divided by the product of Principal and Time. Substituting the given values gives Rate equals 720 times 100 divided by 12000 times 2. This simplifies to 72000 divided by 24000, resulting in a rate of 3%.

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