Multiple choice

A principal amount of Rs. 45,000 with a rate of simple interest becomes Rs. 58,500 in 3 years. What is the rate of interest per annum?

  1. 12.5%

  2. 11%

  3. 10%

  4. 15%

  5. 17.5%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple interest = 58500 - 45000 = 13500. Interest for 3 years = 13500, so interest per year = 4500. Rate = (4500 / 45000) * 100 = 10%.

AI explanation

The simple interest earned is calculated by subtracting the principal from the total amount, giving Rs. 58,500 minus Rs. 45,000, which equals Rs. 13,500. Using the simple interest formula I equals P times R times T divided by 100, we substitute the known values to get 13,500 equals 45,000 times R times 3 divided by 100. Simplifying this, 13,500 equals 1,350 times R, so the rate of interest is 10%.

Keep practicing — related questions