Question

Yukta borrows from Rahul Rs. 2400 with simple interest at the rate of m% for m years. If she paid Rs. 864 as interest, then find what rate she borrowed?
1. 6%
2. 4%
3. 12%
4. 3%

Answer 1

Correct Answer - Option 1 : 6%

Given:

Principal = Rs. 2400 

Rate of interest = m%

Time = m years

Simple Interest = Rs. 864

Formula used:

SI = (P × R × T)/100

Where, P is Principal, R is Rate of interest and T is Time

Calculation:

SI = (P × R × T)/100

⇒ 864 = (2400 × m × m)/100

⇒ (m)² = 36

⇒ m = 6

∴ The rate of interest she borrowed is 6%.