Question

At what rate percent per annum will Rs. $630$ produce a simple interest of Rs. $126$ in $4$ years?

• A. $3\%$
• B. $5\%$
• C. $8\%$
• D. $9\%$

Answer 1

Answer: (B)

$5\%$

We know that, Simple Interest: $I=\frac{PNR}{100}$

Given, $P=$ $Rs.$ $630$, $N=4$ $years$ and $I=$ $Rs$. $126$

So, $126=\frac{630\times 4\times R}{100}$

It gives$\Rightarrow R=\frac{126\times 100}{630\times 4}=5\%$