Multiple choice

Find the rate (percent) per annum simple interest at which Rs. 1200 will amount to Rs. 1668 in six years.

  1. 12.2%

  2. 9.7%

  3. 6.5%

  4. 4.5%

  5. 8.6%
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C Correct answer
Explanation

Simple interest = 1668 - 1200 = 468. SI = P*R*T/100 -> 468 = 1200 * R * 6 / 100 -> 468 = 72 * R -> R = 468 / 72 = 6.5%.

AI explanation

Using the simple interest formula, interest equals principal multiplied by rate multiplied by time divided by 100. Here, the interest is 1668 - 1200, which is 468, so we have 468 equal to 1200 multiplied by rate multiplied by 6 divided by 100. Solving for the rate gives rate equal to 46800 divided by 7200, which results in 6.5%.

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