The interest earned on Rs 15000 in 3 years at simple interest is Rs 5400. Find the rate of interest per annum?
Answer & explanation
Correct answer: option 2
Simple interest for 3 years - 5400
Simple interest for 1 year - 1800
Formulae for SI = \(\frac{\text{P Χ R Χ T} }{ 100}\)
Putting the values in the formulae:
1800 = \(\frac{\text{15000 Χ R Χ 1} }{ 100}\)
1800 = \(\frac{\text{15000R} }{ 100}\)
1800 = 150R
R = \(\frac{1800 }{150 }\)
R = 12%