Question

Interest obtained on a sum of ₹5000 for 3 years is ₹1500. Then what is the rate of interest?

• A. 6%
• B. 8%
• C. 10%
• D. 12%

Answer 1

The correct option is C 10%

Let rate is R%.
We have, I=$\frac{P\times T\times R}{100}$
Principal Amount = ₹5000
Time Period = 3 years
Simple Interest = ₹1500
Here, $1500=\frac{5000\times 3\times R}{100}R=\frac{1500\times 100}{5000\times 3}=\frac{1500}{50\times 3}=10\%$