Sashi took a loan of ₹700 on simple interest for as many years as the rate of interest per annum. If he paid ₹343 as interest at the end of the loan period, what was the rate of interest ?
Answer & explanation
Correct answer: option 4
We know ,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
Rate = Time in years
343 = \(\frac{700 ×Rate × Rate }{100}\)
( Rate )² = 49
Rate = 7%