Question

Find the rate of interest if the amount after 2 years of simple interest on a capital of Rs. 1200 is Rs. 1440.
A.0.08
B.0.09
C.0.1
D.0.11

Answer 1

Given:

The amount after 2 years of simple interest on a capital of Rs. 1200 is Rs. 1440.

To find:

Find the rate of interest

Solution:

From given, we have,

The amount after 2 years of simple interest on a capital of Rs. 1200 is Rs. 1440.

⇒ Amount = A = Rs. 1440

⇒ Principal amount = P = Rs. 1200

∴ Interest is given by,

I = A - P

I = 1440 - 1200

∴ I = Rs. 240.

Therefore, the rate of interest is given by,

R = I/(P × t)

⇒ R = 240 / (1200 × 2)

R = 240/2400

∴ R = 0.1

Hence Option (C) 0.1 is the correct answer