To start a grocery shop, a woman borrowed Rs. $1, 500$ . If the loan was for four years and the amount of interest was Rs. $150$ , what simple interest rate was she charged?

1.5 %

No worries! We‘ve got your back. Try BYJU‘S free classes today!

2.5 %

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

3.5 %

No worries! We‘ve got your back. Try BYJU‘S free classes today!

4.5 %

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B $2.5 %$
Given, principal $=$ Rs. $1500$ , Interest $=$ Rs. $150$ , period $= 4$ years
We know the formula,
Rate of interest, $R =$ $\frac{I \times 100}{P T}$
$\Rightarrow R =$ $\frac{150 \times 100}{1500 \times 4}$
$\Rightarrow R = 2.5 %$
Therefore, the simple interest is $2.5 %$ .

Suggest Corrections

Similar questions

Karan took a loan from a bank at the rate of 12% p.a. simple interest. After a period of 3 years, he had to pay Rs. 5400 as interest. What was the principal amount borrowed by him?

Meena took a loan of Rs. 1200 with simple interest for as many years equal to the rate of interest. If she paid Rs. 432 as interest at the end of the loan period, what was the number of years for which the loan was taken?

Q. Sharmila got a Rs.