Bharat borrowed a sum of Rs.10,000 at a certain rate of simple interest for 2 years. If he paid an interest of Rs.2,000 at the end of the period, then find the rate of interest per annum.

Correct option is D

Given:

Simple Interest(SI) = Rs. 2000  

Principle(P) = Rs. 10000 

Time(t) = 2 years

Formula used: 

SI = $$\frac{P \times r \times t } {100}$$​

SI = Simple Interest
P = Principal amount 
r = Rate of interest per annum 
t = Time in years

Solution:  

Substituting the values in the formula;

​$$2000 = \frac{10000 \times r \times 2}{100}$$ ​

2000 =  $$\frac{20000\times r}{100}$$​

2000 = 200 $$\times$$ r ​

r =    $$\frac{2000}{200}$$ =  10 %

Thus, the Rate of Interest (r) = 10% per annum. 

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