A sum of ₹2,400 gives a simple interest of ₹378 in 2 years 4 months. What is the rate of interest per annum?
- A6.95%
- B6.75%
- C6.85%
- D7.05%
Solution & Step-by-step Explanation
Given:
Principal (P) = ₹2,400
Simple Interest (SI) = ₹378
Time (T) = 2 years 4 months=2+
12
4
years=2+
3
1
years=
3
7
years
The formula for simple interest is:
SI=
100
P×R×T
Substitute the values into the formula:
378=
100
2400×R×
3
7
378=24×R×
3
7
378=8×R×7
378=56R
R=
56
378
=6.75%
The rate of interest per annum is 6.75%.
Principal (P) = ₹2,400
Simple Interest (SI) = ₹378
Time (T) = 2 years 4 months=2+
12
4
years=2+
3
1
years=
3
7
years
The formula for simple interest is:
SI=
100
P×R×T
Substitute the values into the formula:
378=
100
2400×R×
3
7
378=24×R×
3
7
378=8×R×7
378=56R
R=
56
378
=6.75%
The rate of interest per annum is 6.75%.