Discussion
Interest obtained on a sum of Rs. 5,000 for 3 years is Rs. 1,500, then the rate of interest was
Answer: C
The rate of interest was 10% p.a.
Using \(\text{SI} = \frac{P \times R \times T}{100}\):
\[ \begin{aligned} R &= \frac{100 \times \text{SI}}{P \times T} \\ &= \frac{100 \times 1500}{5000 \times 3} = 10 \end{aligned} \]
Check: 10% of Rs. 5,000 is Rs. 500 a year, and three years give Rs. 1,500. At 8%, 9% or 11% the interest would be Rs. 1,200, Rs. 1,350 or Rs. 1,650.
The formula rearranges as \(R = \frac{100 \times \text{SI}}{P \times T}\), so the rate can be read off directly once the interest, principal and time are known.
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