Mathematics
Grade-7
Easy

Question

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

  1. 5 %
  2. 8 %
  3. 1 %
  4. 6 %

hintHint:

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 = fraction numerator 40 cross times 100 over denominator 500 cross times 1 end fraction
    = 8 %.

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