The monthly income of Mr. Roy is Rs. 18,000. He took a loan of Rs. 30,000 on simple interest for 3 years at the rate of 5% per annum. The amount that he will be paying as simple interest in 3 years is what percent of his monthly salary?
Answer & explanation
Correct answer: option 4
Loan amount = Rs.30000
Rate of Interest = 5% p.a.
S.I for 3 years = 3 × 5% = 15%
Total interest after 3 years = 30000 × 15% = Rs.4,500/-
Required percentage = \(\frac{4500}{18000}\) × 100 = 25%