What will be the Actual Interest Rate, out the 4 times? If

Ramesh invested an amount that is 10% of Rs. 10000 at simple interest. After 3 years, the amount becomes Rs.2500. Find out the 4 times of actual interest rate.

  1. 5000%
  2. 250%
  3. 200%
  4. 600%
vijay Professor Asked on 1st August 2015 in Maths.
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  • 1 Answer(s)

    Answer: (3) 200 %
    Explanation:-
    Ramesh invested  an amount = 10 % of Rs.10000
    = 10000 x 10/100
    = Rs.1000
    Then, Principal = Rs.1000,  Time = 3 years,  Amount = Rs.2500
    Then, Simple Interest = 2500 – 1000 = Rs.1500
    Formula-
    Simple Interest = P x R x T/100
    Where, P = principal , R = rate, & T = time.
    Then, 1500 = 1000 x 3 x R/100
    3 = 2 x 3 x R/100
    R = 50 %
    Four times of actual interest rate = 4 x 50
    = 200 %.
    Hence, the answer is (3) 200 %.

    Anurag Mishra Professor Answered on 2nd August 2015.
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