Question

A sum of Rs. 15000 amounts to Rs. 18600 in 4 years at simple interest. What is the rate of interest?
1. 6.5%
2. 5%
3. 6%
4. 8%

Answer 1

Correct Answer - Option 3 : 6%

Given:

P = Rs. 15000,

A = Rs. 18600,

T = 4 years

Concept Used:

SI = A – P, 

SI = (P × N × R)/100,

Where,

A is amount,

P is principle,

SI is simple interest,

N is total number of years,

R is rate.

Calculation:

SI = 18600 - 15000 = Rs. 3600

⇒ 3600 = (15000 × 4 × R)/100

⇒ R = 360000/60000 = 6

∴ Rate of interest is 6%

 Rs. 18600 is amount not simple interest.