Q. A loan of Rs. 1200 is repaid after 2 years by paying Rs. 1320. What was the yearly simple interest rate?
✅ Correct Answer: (B)
5%
Explanation: SI = 1320−1200 = 120. R = SI×100/(P×T) = 120×100/(1200×2) = 12000/2400 = 5%. Other options do not satisfy the calculation.
Explanation by: Mr. Dubey
SI = 1320−1200 = 120. R = SI×100/(P×T) = 120×100/(1200×2) = 12000/2400 = 5%. Other options do not satisfy the calculation.