Question

At what rate of simple interest will ` 4800 amount of ` 6480 in a span of 7 years?
1) 5
2) 6
3) 3
4) 4
5) None of these

Answer 1

Hey there!

Given,
Amount = 6480
Principle = 4800.

Interest = 6480 - 4800 = 1680

According to the question, The money is lent for simple interest.

So, We know the formula,
I = P × T × R / 100
where, P = principle
T = time
R = rate of interest.
I = interest.

We are given that,
Span or time = 7 years,

So 1680 = 4800(7)R/100
R = 1680 * 100 / 4800 * 7
R = 5 .

Therefore , The rate of interest at which 4800 would amount to 6480 in span of 7 years is 5% .

Correct option is 1

Answer 2

SI = 6480 - 4800 = 1680

P = 4800  

N = 7 Years

R = ?

SI = PNR/100

1680 = (4800 * R * 7)/100

R = 1680/48 * 7

R = 5%

So, the rate of interest is 5%