Question

If a sum of $\$300$ invested in simple interest for a period of $3$ years earns an interest of $\$18$, then the percentage rate of interest is

• A. 2

Answer 1

The correct option is A 2
Given Principal amount $P=\$300$
Simple interest$SI=\$18$
Time $T=3$ years
We know that $SI=\frac{P\times R\times T}{100}$

$\$18=\frac{300\times R\times 3}{100}$

$\Rightarrow R=\frac{18}{9}\%=2\%$

$\therefore$ Rate of interest is $2\%$