Question

Reeta deposited Rs. 5000 in a bank for 3 years at annual rate of interest. If she get Rs. 6500 after 3 years. Then what is the rate of interest?
1. 10%
2. 20%
3. 15%
4. 8%

Answer 1

Correct Answer - Option 1 : 10%

Given:

Principal = Rs. 5000 

Time = 3 years

Amount = Rs. 6500 

Formula used:

Simple interest(SI) = \(\dfrac{P × R × T}{100}\)

Where,

P = Principal

R = Rate

T = Time

Simple interest(SI) = Amount - Principal

Calculation:

According to the question,

Simple interest(SI) = Amount - Principal

⇒ Simple interest(SI) = Rs. 6500 - Rs. 5000 = Rs. 1500

Now,

Simple interest(SI) = \(\dfrac{P × R × T}{100}\)

⇒ 1500 = \(\dfrac{5000 × R × 3}{100}\)

⇒ R = 10%

∴ The rate of interest is 10%.