A sum of Rs. 5750 earns Rs. 2620.50 as simple interest in 5 years. Find the approximate rate of interest.
Show answer & explanation
Correct answer: B
Explanation
Given:
Principal = 5750
Time = 5 years
Simple Interest = 2620.50
Formula:
SI = (P × R × T) / 100
2620.50 = (5750 × R × 5) / 100
2620.50 = 28750R / 100
2620.50 = 287.5R
R = 2620.50 / 287.5
R = 9.11%