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    Question

    An amount of Rs. 12,000 invested at simple interest for 4

    years becomes Rs. 17,280. Calculate the annual rate of interest.
    A 18 Correct Answer Incorrect Answer
    B 11 Correct Answer Incorrect Answer
    C 12 Correct Answer Incorrect Answer
    D 20 Correct Answer Incorrect Answer

    Solution

    ATQ,

    Interest earned = 17,280 - 12,000 = Rs. 5,280

    Simple interest = Principal × rate × time ÷ 100

    So, 5,280 = 12,000 × rate × 4 ÷ 100

    Or, 5,280 = 480 × rate

    Or, rate = 11

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