Question

At what rate of simple interest will ₹ 6,500 amount to ₹ 8,775 in 5 years?

• A. 6%
• B. 7%
• C. 10%
• D. 8%

Answer 1

The correct option is B 7%

Given Principle = ₹ 6,500 ,Amount = ₹ 8,775, Time = 5 years
Amount= Principle + Interest
Interest = Amount - Principle
Interest for 5 years = 8,775 - 6,500
= ₹ 2,275
Interest = $\frac{P\times T\times R}{100}$
Interest for 5 years 2,275 = $\frac{6,500\times 5\times R}{100}$
R=7 %