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%
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