Question

Rahul takes loan of Rs.25000 and repays an amount of Rs.31000 at the end of 2 years. What is the rate of simple interest at which he repays the loan?

• A. 8%
• B. 6%
• C. 12%
• D. 9%

Answer 1

Answer:

C. 12%

I = 31000 - 25000=6000 P = 25000 N=2 PNR/100 = 1 (25000 x 2 x R)/100 = 6000 R = (6000 x 100)/(25000 x 2) = 12%