Question

If the Simple Interest on a sum of ₹ 50,000 for a period of 1 year is ₹ 2000, find the rate of interest.

• A. $5\%$
• B. $6\%$
• C. $7\%$
• D. $8\%$

Answer 1

The correct option is D

$8\%$

Given, Principal = ₹ 50,000

Let the rate of interest be $r$

Time= 1 year

$\Rightarrow$ Simple Interest $=\frac{\text{P}\times R\times \text{T}}{100}$

$\Rightarrow 2000=\frac{50000\times r\times 1}{100}$

$\Rightarrow r=\frac{2000\times 100}{50000\times 1}$

$\Rightarrow r=4\%$