Question
__________ is the rate of interest, if £120 is paid per year on a principal amount of £700.
- 17.14%
- 11.25%
- 15%
- 10%
Hint:
Simple interest=P*T*R/100
R=100*S.I/P*T
The correct answer is: 17.14%
P= £700, R= ? , T = 1 year, I = £120
Simple interest, I = PRT
£120 = 700 × R × 1
R = = 0.1714 = 17.14%
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