Multiple choice

A sum of ₹5000 becomes ₹6200 in 2 years at simple interest. Find the rate of interest per annum.

  1. 10%

  2. 12%

  3. 15%

  4. 18%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple Interest = 6200 - 5000 = 1200. Principal = 5000, Time = 2 years. Rate = (SI * 100) / (P * T) = (1200 * 100) / (5000 * 2) = 120000 / 10000 = 12%.

AI explanation

Using the simple interest formula, Simple Interest = (Principal x Rate x Time) / 100, the interest earned is 6200 - 5000 = 1200. Substituting the known values gives 1200 = (5000 x Rate x 2) / 100. Solving for the rate, we get 1200 = 100 x Rate, which means the rate is 12% per annum. The result is 12%.

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