Question

If the interest gain by a person is ₹2,000 on the principal amount ₹50,000 in 2 years. Find the rate of simple interest.

• A. 1%
• B. 2%
• C. 3%
• D. 4%

Answer 1

The correct option is B 2%

We already know,
$\text{Simple Interest}=\frac{Principal\times Rate\times Time}{100}$

Assume rate of interest is $r$.
On substituting given values, we have
$⟹2000=\frac{50000\times r\times 2}{100}⟹2000=1000r⟹r=2$

Rate of interest will be 2%.
Hence, option 'b' is correct option.