Question

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

- 15.4%
- 14.9%
- 20%
- 13.05%

Hint:

### Obtain the Rate of Interest from the given data by substituting them in the simple interest formula.

## The correct answer is: 15.4%

### Simple interest paid for 3 years = 18 ×12 × 2 = £432

Simple interest, I = PRT

432 = 1400 × R × 2

R = = 0.154 = 15.42 %

### Related Questions to study

### _______ is the interest on £356 principal at 8% per year for 5 years.

### _______ is the interest on £356 principal at 8% per year for 5 years.

### 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

### ______ is the simple interest earned by lending £1600 principal at 7% per annum over a period of 12 years.

>>>

>>>Simple Interest =

>>> Simple Interest = 1344.

### ______ is the simple interest earned by lending £1600 principal at 7% per annum over a period of 12 years.

>>>

>>>Simple Interest =

>>> Simple Interest = 1344.

### _______ is the interest on £567 at 4% every year over a period of 6 years.

>>>

>>>Simple interest =

>>>Simple Interest = 130.80

### _______ is the interest on £567 at 4% every year over a period of 6 years.

>>>

>>>Simple interest =

>>>Simple Interest = 130.80

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

### 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 =

>>>Principal amount = 2000.

### __________ 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 %.

### 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 %

### 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 %