Madhya Pradesh Police Exam Model Paper 1

Question : 73 of 100

Marks: +1, -0

A sum of Rs. 15000 amounts to Rs. 18600 in 4 years at simple interest. What is the rate of interest?

6.5%
5%
6%
8%

Solution:

GIVEN:
P = Rs. 15000, A = Rs. 18600, T = 4 years
FORMULA USED:
Simple Interest = PRT/100
Where, P = principle, R = Rate of interest, T = time period
CALCULATION:
SI = 18600 - 15000 = Rs. 3600

⇒ 3600 = (15000 × 4 × R){/}100

⇒ R = 360000{/}60000 = 6

∴ Rate of interest is 6%

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