Question

What is the simple interest rate per annum if Rs 1600 amounts to Rs 1900 in 2.5 years?

• A. 9.5%
• B. 7.5%
• C. 6.25%
• D. 8%

Answer 1

The correct option is B

7.5%

P = Rs 1600, A = Rs 1900 and T = 2.5 years

$I=A-P$

= Rs 1900 − Rs 1600

= Rs 300

$Rate=\frac{(100\times I)}{(P\times T)}$

$=\frac{(100\times 300)}{(1600\times 2.5)}$

$=7.5\%$

Hence, the rate per cent is 7.5