Vijay took a loan of Rs. 10976 with simple interest for as many years as the rate of interest. If he

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19 Jul 2019 Simple Interest

Vijay took a loan of Rs. 10976 with simple interest for as many years as the rate of interest. If he paid Rs.686 as interest at the end of the loan period, what was the rate of interest?

OPtion

1) 4%
2) 3.5%
3) 2.5%
4) 6.25%
5) 16%
6) 1.5%
7) 8%
8) 1.75%
9) 1.16%
10) None of these

Solution

SI = PRT/100

R = T = x

So 686 = 10976*x^2/100

=> x^2 = 6.25
=> x = 2.5

Correct Option: 3 Best Solution (4)