Question

A sum of Rs.3200 gives a simple interest of Rs. 504 in 2 years and 3 months, then find the rate of interest per annum.
1. 8.5%
2. 7%
3. 8%
4. 7.5%

Answer 1

Correct Answer - Option 2 : 7%

Given:

Principal = Rs. 3200

T = 2 years 3 months = 9/4 years

S.I = Rs. 504

Formula:

SI = PRT/100

Where, P = Principal, R = Rate, T = Time

Calculation:

R = (100 × SI)/(P × T)

⇒ R = (100 × 504)/{3200 × (9 / 4)}

⇒ R = 50400/7200

⇒ R = 7%

∴ Rate of interest is 7% per annum