Question

- After 4 years the principal amount of Rs. 12000 grows into Rs. 14,400. Find out the rate of simple interest?
(A) 3%
(B) 5%
(C) 4%
(D) 6%​

Answer 1

Answer:

5%.

Step-by-step explanation:

Principal (P) = Rs. 12000

Time (T) = 4 years

Simple Interest (S.I.) = (14400 - 12000) = Rs. 2400

Formula says,

Rate (R) = $\frac{S.I. *100}{P * T}$

∴ R = 2400 × 100 / 12000 × 4 = 5%

Answer 2

Given:

Principal amount = Rs. 12000

Amount = Rs. 14,400

Time period = 4 years

To find:

The rate of simple interest.

Solution:

First we need to find out the simple interest:

Simple interest = Amount- Principal

= Rs. 14400- 12000 = Rs. 2400

Now from the formula of simple interest:

Simple interest = Principal*rate*time/ 100

2400 = 12000* R* 4 / 100

2400 = 120* R* 4

2400 = 480R

R = 2400 / 480

R= 5%

Therefore, the rate of simple interest is 5%.