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At what rate (in percentage) per annum will ₹ 1,300 give ₹520 as simple interest in 8 years?
Question

At what rate (in percentage) per annum will ₹ 1,300 give ₹520 as simple interest in 8 years?

A.

8%

B.

7%

C.

4%

D.

5%

Correct option is D

Given:

- Principal (P) = ₹1,300

- Simple Interest (SI) = ₹520

- Time (T) = 8 years

Formula Used:

Simple Interest (SI) is calculated using the formula:
SI = (P×R×T)100\frac{(P × R × T) }{100}​​
Where SI = Simple Interest, P = Principal, R = Rate of Interest, T = Time

Solution:

Rearrange the formula to solve for Rate of Interest (R):

R=(SI×100)(P×T) R=(520×100)(1300×8) R=5200010400 R=5R = \frac{(SI × 100) }{ (P × T)} \\\ \\R = \frac{(520 × 100) }{ (1300 × 8)} \\\ \\R =\frac{ 52000 }{10400 }\\\ \\R = 5%​​

The rate of interest is 5% per annum.

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