Question

A sum of Rs 1600 gives a simple interest of Rs 252 in 2 years and 4 months. What is the rate of simple interest per annum?

• A. 6.75%
• B. 7.75%
• C. 6.5%
• D. 8.5%

Answer 1

The correct option is A

6.75%

Given,

Principal (P) = Rs 1600

Time (T) = 2 years 4 months

$T=2\frac{4}{12}$ ($\because 1year=12months$)

$T=\frac{7}{3}years$

S.I. = Rs 252

$\text{We know that,}$

$SimpleInterest(S.I.)=\frac{P\times R\times T}{100}$

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

$=\frac{(100\times 252\times 3)}{(1600\times 7)}$

$=$ 6.75 ​

Hence, the rate of simple interest is $6.75\%$ p.a.