Answer

Verified

348k+ views

**Hint:**We are given that when we invested an amount Rs.1500, we received an amount of Rs.5000 after three years. We are asked to find the interest rate for the given values. We will use the formula of simple interest, which is, \[S.I=\dfrac{P\times R\times T}{100}\]. We will substitute the values in the formula and solve it to find the value of the rate of interest. Hence, we will have the required value as asked in the question.

**Complete step by step answer:**

According to the given question, we are given the principal amount, which is, Rs.1500 which is invested for three years after which we get the amount as Rs.5000. we are asked in the question to find the rate of interest for the same.

We will first write down the given,

The principal amount, P = Rs.1500

Time period, T = 3 years

Amount received after the tenure = Rs.5000

Here, we will use the simple interest formula to find the rate of interest, R, we have,

\[S.I=\dfrac{P\times R\times T}{100}\]

We will now substitute the values in the above expression, we get,

\[\Rightarrow 5000=\dfrac{1500\times R\times 3}{100}\]

Now, we will cross multiply the 100 and we get,

\[\Rightarrow 5000\times 100=1500\times R\times 3\]

Solving further for R, we get,

\[\Rightarrow 500000=4500R\]

Now, writing the expression in terms of R, we get,

\[\Rightarrow R=\dfrac{500000}{4500}\]

Cancelling out the common zeroes and we have,

\[\Rightarrow R=\dfrac{5000}{45}\]

Dividing the fraction, we get the value of R as,

\[\Rightarrow R=111.11\%\]

Therefore, the rate of interest is (A) \[111.11\%\]

**So, the correct answer is “Option A”.**

**Note:**The contrast as to when to use simple interest and when to use compound interest should be made familiar and not mixed up. Simple interest in simple words is based on the principal amount whereas compound interest is based on principal amount and the interest that accumulates. The formula of the compound interest is as follows,

\[A=P{{\left( 1+\dfrac{R}{100} \right)}^{T}}\]

Recently Updated Pages

How many sigma and pi bonds are present in HCequiv class 11 chemistry CBSE

Why Are Noble Gases NonReactive class 11 chemistry CBSE

Let X and Y be the sets of all positive divisors of class 11 maths CBSE

Let x and y be 2 real numbers which satisfy the equations class 11 maths CBSE

Let x 4log 2sqrt 9k 1 + 7 and y dfrac132log 2sqrt5 class 11 maths CBSE

Let x22ax+b20 and x22bx+a20 be two equations Then the class 11 maths CBSE

Trending doubts

Which are the Top 10 Largest Countries of the World?

Fill the blanks with the suitable prepositions 1 The class 9 english CBSE

Difference between Prokaryotic cell and Eukaryotic class 11 biology CBSE

Give 10 examples for herbs , shrubs , climbers , creepers

Difference Between Plant Cell and Animal Cell

The Equation xxx + 2 is Satisfied when x is Equal to Class 10 Maths

Change the following sentences into negative and interrogative class 10 english CBSE

Differentiate between homogeneous and heterogeneous class 12 chemistry CBSE

Select the word that is correctly spelled a Twelveth class 10 english CBSE