Question

A sum of $Rs.46,875$ was lent out at simple interest and at the end of $1$ year $8$ months the total amount was $Rs,50,000$. Find the rate of interest per annum.

• A. $3.5$%
• B. $4.5$%
• C. $5$%
• D. $4$%

Answer 1

Answer: (D)

$4$%

$A=P(1+it)$
$50,000=46,875(1+i\times 1\frac{8}{12})$
$i=0.04;rate=4$%.