Ram borrowed an amount of Rs. 15000 from a bank to buy a car at 10% simple interest. If he paid Rs. 9000 as interest while clearing the loan, determine the period of the loan.

5 years

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6 years

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7 years

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3 years

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Solution

The correct option is B
6 years

Principal, P = Rs. 15,000

Rate of Interest, R = 10% = 0.10

Interest paid, I = Rs. 9,000

T = $\frac{9000}{15000 \times 0.10}$ = 6 years

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Ram borrowed an amount of Rs. 15000 from a bank to buy a car at 10% simple interest. If he paid Rs. 9000 as interest while clearing the loan, determine the period of the loan.

The correct option is B 6 years Principal, P = Rs. 15,000 Rate of Interest, R = 10% = 0.10 Interest paid, I = Rs. 9,000 T = 900015000×0.10 = 6 years

The correct option is B
6 years

Principal, P = Rs. 15,000

Rate of Interest, R = 10% = 0.10

Interest paid, I = Rs. 9,000

T = $\frac{9000}{15000 \times 0.10}$ = 6 years