X took a loan of Rs. 5000 on simple interest, the rate of interes

| X took a loan of Rs. 5000 on simple interest, the rate of interest is the same as the number of years for which the loan was taken. If the interest paid was Rs. 1800, then what was the rate of interest?

A. 6.5%

B. 6%

C. 5%

D. 5.5%

Please scroll down to see the correct answer and solution guide.

Right Answer is: B

SOLUTION

Let the rate of interest be r%

Time = r [Because time and rate in equal]

P = 5000 and SI = 1800

As we know,

SI = Prt/100

⇒ 1800 = (5000 × r × r)/100

⇒ r² = 1800/50 = 36

⇒ r = √36

⇒ r = 6

So, the rate of interest is 6%.