What was the Rate of Interest? If

Prakash took a loan of Rs.5,000 for 3 years with simple interest. If after 3 years he paid Rs.6,000 including the principal and the interest accrued, what was the rate of interest?

  1. 8%
  2. 12%
  3. 20%
  4. 6%
vijay Professor Asked on 26th July 2015 in Maths.
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1 Answer(s)

Answer: (1) 8 %
Explanation:-
Given-
Principal = Rs.5000, Amount = Rs.6200, time = 3 years, Rate = ?
Simple interest = 6200 – 5000
= Rs.1200
Formula-
Simple interest = P  x  R x T/100
Where, P = principal, R = rate,  T = time.
Then, 1200 = 5000 x R x 3/100
3 R = 120/5
R = 8 %
Hence the answer is (1) 8 %.

Anurag Mishra Professor Answered on 26th July 2015.
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