A sum of money was lent on simple interest. After 7 years it’s simple interest became 7/10 of it. Find the rate of interest per annum.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e 10%.
SI = (P × R × T) / 100
SI = 7/10 × P
Also, SI = (P × R × 7) / 100
⇒ (7/10) × P = (P × R × 7) / 100
⇒ 7/10 = (7R) / 100
⇒ 70 = 7R
⇒ R = 10