Mr. Sharma takes loan of Rs. $25000$ and repays an amount of Rs. $31000$ at the end of $2$ years. What is the rate of simple interest at which he repays the loan?

8 %

p.a.

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6 %

p.a.

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12 %

p.a.

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9 %

p.a.

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Solution

The correct option is C $12 %$ p.a.
From question, we have
Principal $=$ Rs. $25000$ , Amount $=$ Rs. $31000$ , Time $= 2$ years
$∴$ S.I. $=$ Rs. $31000 -$ Rs. $25000 =$ Rs. $6000$
Rate $= \frac{6000 \times 100}{25000 \times 2} = 12 %$ p.a.

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Mr. Sharma takes loan of Rs. 25000 and repays an amount of Rs. 31000 at the end of 2 years. What is the rate of simple interest at which he repays the loan?

The correct option is C 12% p.a. From question, we havePrincipal = Rs. 25000, Amount = Rs. 31000, Time =2 years∴ S.I. = Rs. 31000− Rs. 25000= Rs. 6000Rate =6000×10025000×2=12% p.a.

Mr. Sharma takes loan of Rs. $25000$ and repays an amount of Rs. $31000$ at the end of $2$ years. What is the rate of simple interest at which he repays the loan?

The correct option is C $12 %$ p.a.
From question, we have
Principal $=$ Rs. $25000$ , Amount $=$ Rs. $31000$ , Time $= 2$ years
$∴$ S.I. $=$ Rs. $31000 -$ Rs. $25000 =$ Rs. $6000$
Rate $= \frac{6000 \times 100}{25000 \times 2} = 12 %$ p.a.