Question

# __________ would be the rate of interest, if £105 is paid per year on a principal amount of £840.

- 4%
- 10.1%
- 12.5%
- 9.36%

Hint:

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

## The correct answer is: 12.5%

### I = £105, P = £840 , T = 1 year, R = ?

I = PTR

105 = 840 × 1 × R

R = 105/840 = 0.125 = 12.5%

### Related Questions to study

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= 420 + 35.28

= 455.28

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