A person borrow some money on simple interest. After 15 years, the simple interest will be 19/15 of the borrowed amount. What is the rate of interest per annum?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e .
Let the borrowed amount (principal) be P.
Simple interest after 15 years = 19/15 of P
SI = (P × R × T) / 100 = (19/15) × P = (P × R × 15) / 100
⇒ 19/15 = (R × 15) / 100
⇒ (19/15) × 100 = R × 15
⇒ (1900 / 15) = R × 15
⇒ R = (1900 / 15) / 15 = 1900 / 225 =