Question

At what interest rate per annum should ₹ 3000 be invested for 2 years, so as to generate a simple interest of ₹ 300?

• A. 5 % per annum
• B. 15 % per annum
• C. 10 % per annum
• D. 7.5 % per annum

Answer 1

The correct option is A

5 % per annum

Given P = ₹ 3000, SI = 300 and T = 2 years

SI = $\frac{P\times T\times R}{100}$

300 = $\frac{3000\times 2\times R}{100}$

R = $\frac{300\times 100}{3000\times 2}$

R = 5 % per annum.