The simple interest on a sum of ₹ 8,000 for 2 years is ₹ 720 . What is the annual interest rate? - Quantitative Aptitude MCQ Competitive Exam 2026 | ExamTest.live

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The simple interest on a sum of ₹ 8, 000 for 2 years is ₹ 720 . What is the annual interest rate?

Solution & Step-by-step Explanation

The formula for Simple Interest (SI) is: SI = \frac{P \times R \times T}{100} Where: SI = ₹720 P = ₹8, 000 T = 2 years R = Annual interest rate Substituting the given values: 720 = \frac{8000 \times R \times 2}{100} 720 = 160 \times R R = \frac{720}{160} = \frac{72}{16} = 4.5% The annual interest rate is 4.5% .

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The simple interest on a sum of ₹ 8, 000 for 2 years is ₹ 720 . What is the annual interest rate?

5.5%

5%

6%

4.5%

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