Question

find the annual interest rate if the simple interest on R1050 for 3years and 6 months is R514.50?

1. 16%
2. 1%
3. 14%
4. 49%

Answer 1

Solution :-

Principal = Rs. 1050 

Time = 3 years and 6 months = 3 1/2 years = 7/2 years

Simple Interest = Rs. 514.50

Rate of Interest = ?

Simple Interest = (P*R*T)/100

⇒ 514.50 = (1050*R*7)/(100*2)

⇒ 514.50 = 7350R/200

⇒ 7350R = 514.50*200

⇒ 7350R = 102900

⇒ R = 102900/7350

⇒ R = 14 %

Hence, the annual rate of interest is 14 %.

So, option (3) is correct.

Answer.