Question

Jenn borrowed Rs. $5,000$ for $5$ years and had to pay Rs. $1,500$ simple interest at the end of that time. What rate of interest did she pay?

• A. $4\%$
• B. $5\%$
• C. $6\%$
• D. $7\%$

Answer 1

The correct option is C $6\%$

Given, $I=1500,P=5000,T=5$ years

We need to find rate of interest $R$.

We know the formula,
Rate of interest, $R=$ $\frac{I\times 100}{PT}$
$\Rightarrow R=$ $\frac{1500\times 100}{5000\times 5}$
$\Rightarrow R=6\%$