Question

Santosh invested ₹ 2,200 for N years at a rate of interest of N% under simple interest. If he gets an interest of ₹ 1,408, what is the rate of interest?
1. 8%
2. 10%
3. 6%
4. 12%

Answer 1

Correct Answer - Option 1 : 8%

Given:

Principle is Rs. 2,200

Number of years is N

Rate of interest is N%

Interest is Rs. 1,408

Concept Used:

SI = (P × N × R)/100,

Where,

P is principle,

SI is simple interest,

N is total number of years,

R is rate

Calculation:

Using the above formula,

⇒ 1,408 = (2,200 × N × N)/100

⇒ N2 = 1,408/22

⇒ N2 = 64

⇒ N = 8

∴ Rate of interest is 8%.