Multiple choice

What rate gives Rs. 280 as interest on a sum of Rs.56000 in 2 years?

  1. 2.5 %

  2. 0.25%

  3. 25%

  4. 0.025%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest formula is I = (P*R*T)/100. Plugging in 280 = (56000*R*2)/100, we get 280 = 1120*R, so R = 280/1120 = 0.25%.

AI explanation

Using the simple interest formula, the rate equals the interest multiplied by 100, divided by the product of the principal and the time. Substituting the given values, the rate equals 280 multiplied by 100, divided by the product of 56000 and 2. This simplifies to 28000 divided by 112000, resulting in a rate of 0.25%.

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