Question

# If £600 is paid as interest towards a loan of £1500 over a period of 8 years, the rate of interest is _________.

- 0%
- 2%
- 5%
- 8%

Hint:

### Obtain the rate of interest from the given data by substituting them in a simple interest formula.

## The correct answer is: 5%

### I = £600, P = £1500 , T = 8 years, R = ?

I = PTR

600 = 1500 × 8 × R

R = 600/(1500 x 8)= 0.05 = 5%

### Related Questions to study

### If Julie pays £18 per month till 2 years on borrowing £1400, _____ is the rate of interest.

### If Julie pays £18 per month till 2 years on borrowing £1400, _____ is the rate of interest.

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### Fred borrows £420 from a person at 2.8% per annum and promises to pay it back in 3 years. Determine the total amount to be paid back by him.

>>>Simple Interest =

>>> Simple Interest = 35.28.

>>>Therefore, the total amount that he should return = Simple Interest + Principal Amount.

= 420 + 35.28

= 455.28

### Fred borrows £420 from a person at 2.8% per annum and promises to pay it back in 3 years. Determine the total amount to be paid back by him.

>>>Simple Interest =

>>> Simple Interest = 35.28.

>>>Therefore, the total amount that he should return = Simple Interest + Principal Amount.

= 420 + 35.28

= 455.28

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>>>

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>>>

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### Bob wants to find the principal, if £100 is collected for 1 year by lending at 2% per annum.

### A bank lends loan at 8% per year in simple interest. The bank collects £800 over a period of 5 years in interest. __________ is the amount given on loan.

>>>

>>>

>>>Principal amount =

>>>Principal amount = 2000.

### A bank lends loan at 8% per year in simple interest. The bank collects £800 over a period of 5 years in interest. __________ is the amount given on loan.

>>>

>>>

>>>Principal amount =

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### __________ is the rate of interest, if £40 is paid per year on a principal amount of £500.

>>> Rate of interest =

= 8 %.

### __________ is the rate of interest, if £40 is paid per year on a principal amount of £500.

>>> Rate of interest =

= 8 %.

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>>> .

>>> Rate of interest =

= 5 %

### If £200 is paid as interest towards a loan of £1000 over a period of 4 years, the rate of interest is _________.

>>> .

>>> Rate of interest =

= 5 %