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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