Question

Ashok borrowed Rs. 15,000 for 3 years at simple interest. If he paid Rs. 2700 as interest, then the rate of interest would be:
1. 5.4% p.a.
2. 6% p.a.
3. 9% p.a.
4. 18% p.a.

Answer 1

Correct Answer - Option 2 : 6% p.a.

Given:

Principal, P = Rs 15,000

Time period, T = 3 years 

Interest paid for 3 years = Rs 2700

Concept used:

Simple interest, SI = PRT/100

Calculation:

SI = PRT/100

⇒ 2700 = (15,000 × 3 × R)/100

⇒ R =  2700 × 100/(15,000 × 3)

⇒ 6%

∴ The rate of interest is 6%.