Question

If the Interest paid by Sambha on ₹14000, is ₹1260 for a period of 3 years. then find the rate of simple interest charged.  

Options

• 3%

• 4%

• 6%

• None of these 

Answer 1

3%

Explanation:

Method-1:

`1260 = (14000 xx 3 xx "r")/100`

r = `1260/(140 xx 3)`

= 3% per annum

Method-2:

Interest for 3 years = ₹1260

Interest for 1 year

= `1260/3`

= ₹420

Rate of interest

= `420/14000 xx 100`

= 3%

(S.I. is the same for different years)