Question 57

If the simple interest on Rs. 400 for 10 years is Rs. 280, then rate of interest per annum is

Solution

Let rate of interest = $$r\%$$

Principal (P) = Rs. 400 and time period (t) = 10 years

Simple interest = $$\frac{P \times r \times t}{100}$$

=> $$\frac{400 \times r \times 10}{100}=280$$

=> $$40r=280$$

=> $$r=\frac{280}{40}=7\%$$

=> Ans - (A)

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