Question

A sum of Rs. 9800 gives simple interest of Rs. 4704 in 6 years. What will be the rate of interest per annum?

• A. 9%
• B. 8.55%
• C. 8%
• D. 7.5%

Answer 1

Answer:

C. 8%

Solution:

Given:

Principal = Rs. 9800

Simple interest = Rs. 4704

Time = 6 years

Formula used:

Simple interest $(SI) = Principal (P)\times{Rate (r)}\times{\frac{Time (T)}{100}}$

$SI = \frac{P\times{R}\times{t}}{100}$

Where, T is in years

Calculation:

$4704 = 9800\times{R}\times{\frac{6}{100}}$

$⇒ R = \frac{4704}{588}$

∴ R = 8%