Question

A sum amounts to ₹6,600 in 4 years. If the interest earned is ₹1,600, what is the rate of interest per annum?

• A. 8%
• B. 9%
• C. 10%
• D. 12%

Answer 1

The correct option is A 8%

S.I = ₹1,600
Amount = ₹6,600

$\therefore$ P = A - S.I
$\Rightarrow$ P = 6,600 - 1,600 = ₹5,000

Time = 4 years

$\because$ S.I = $\frac{P\times R\times T}{100}$

$\Rightarrow$ R = $\frac{S.I\times 100}{P\times T}$

$\Rightarrow$ R = $\frac{1,600\times 100}{5,000\times 4}$

$\Rightarrow$ R = 8%

Rate of interest is 8%.