Study the given table and answer the question that follows.
The table shows the total number of batteries sold by a company (in lakhs) over the years.
A person borrowed some money on simple interest . After 5 years he returned of the money to the lender. What was the rate of interest?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 8% p.a.
Let Principal (P) = 5
Amount returned = 7/5 of P = 7
SI = 7 - 5 = 2
SI = (P × R × T)/100
⇒ 2 = (5 × R × 5)/100
⇒ R = 8% p.a.