Simple and Compound Interest Questions

Multiple choice
  1. 120%

  2. 20%

  3. 50%

  4. None of these

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Cash price is 600. Down payment is 300, remaining balance is 300. After 2 months, 360 is paid, so interest is 60. Simple interest formula: I = (P * R * T) / 100. 60 = (300 * R * (2/12)) / 100. 60 = 3 * R * (1/6) = R / 2. R = 120%.