A principal amount of ₹1,000 yields a simple interest of ₹180 over a period of 2 years. What is the annual rate of simple interest?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 9%.
Given: Principal = ₹1000, Simple Interest = ₹180, Time = 2 years
Thus, the annual rate of simple interest is 9% per year.