Question

If the interest charged for 18 months is 0.15 times the money borrowed, then the rate of interest per year is $12\%$. State with true or false.

• A. True
• B. False

Answer 1

The correct option is B False

Let the money borrowed be Rs. 100.
Interest (I) charged = 0.15 $\times$ Rs. 100 = Rs. 15
Rate of interest $=\frac{\{100\times 15\}}{\left\{\right(100\times 1.5\left)\right\}}\times 100$ $=10\%$