Mathematics
Grade-7
Easy
Question
__________ is the rate of interest, if £40 is paid per year on a principal amount of £500.
- 5 %
- 8 %
- 1 %
- 6 %
Hint:
Find the rate of interest from the given information by substituting in the simple interest formula.
The correct answer is: 8 %
P= £500, I = £40 , T= 1year, R= ?
40 = 500 ×R×1
R = 40/500 = 0.08 = 8%
>>> Rate of interest =
= 8 %.
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