Question

The simple interest accrued in 2 years on a principal of ₹24000 is one-eighth of the principal. What is the rate of simple interest p.c.p.a.? 

विकल्प

• 5

• 4.5

• 6.25

• 7.25

Answer 1

6.25

Explanation:

Method-1:

S.I. = `1/8 xx "Principal"`

= `1/8 xx 24000`

= ₹3000

∴ Rate = `("S.I." xx 100)/("Principal" xx "Time")`

= `(3000 xx 100)/(24000 xx 2)`

= 6.25% per annum

Method-2:

`"S.I."/"Principal" = 1/8`

∴ Rate = `("S.I.")/"Principal" xx 10/"Time"`

= `1/8 xx 1000/2 = 25/4`

= 6 .25% per annum.