X took a loan of ₹5000 on simple interest, the rate of interest being the same as the number of years for which the loan was taken. If the interest paid was ₹1800, then what was the rate of interest?
Answer & explanation
Correct answer: option 2
Simple Interest = \(\frac{Principal × Rate × Time }{100}\)
Rate = Time
1800 = \(\frac{5000 × Rate × Rate }{100}\)
( Rate )² = \(\frac{180000 }{5000}\)
( Rate )² = 36
Rate = 6
So , The rate of interest is 6%.