Multiple choice

A person deposited Rs. 6,000 in a bank and received Rs. 7,500 at the end of 5 years. Find the rate of interest, assuming that interest is simple interest.

  1. 3.5%

  2. 4%

  3. 5%

  4. 5.5%

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple Interest = 7500 - 6000 = 1500. Principal = 6000, Time = 5 years. SI = (P * R * T) / 100 => 1500 = (6000 * R * 5) / 100 => 1500 = 300 * R => R = 5%.

AI explanation

First, find the total simple interest earned by subtracting the principal from the maturity amount, which is 7500 minus 6000, giving 1500. The formula for simple interest is Interest equals Principal multiplied by Rate multiplied by Time divided by 100. Substituting the known values, 1500 equals 6000 multiplied by Rate multiplied by 5 divided by 100, and solving for Rate gives 1500 multiplied by 100 divided by 30000, which is 5 percent.

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