Question
If Cathy pays £10 every month until 9 years on borrowing £1000, _____ is the rate of interest.
- 12%
- 1%
- 0.50%
- 0.4%
Hint:
R=100*S.I/P*T
The correct answer is: 12%
P= 1000, R= ? , T = 9 years
Simple interest paid for 9 years = 10 ×12 × 9 = £1080
Simple interest, I = PRT
£1080 = 1000 × R × 9
R = 
= 0.12 = 12%
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