Question

Shubham borrows ₹ 7000 and pays ₹ 9000 at the end of the year to clear his debt. Find the rate of interest.

• A. 28.57%
• B. 29.57%
• C. 30.57%
• D. 27.57%

Answer 1

The correct option is A 28.57%

So, the amount paid = ₹ 9000
And, amount borrowed = ₹ 7000
So, the interest paid = amount paid - amount borrowed
= 9000 - 7000
= 2000
Now, let the interest rate be x
So,
$\frac{2000}{7000}=\frac{x}{100}$
$\frac{x}{1}=\frac{200}{7}$
$x=28.57$