Quantitative Aptitude • Simple & Compound InterestMedium
A sum of ₹7,000 becomes ₹7,700 in 2 years at simple interest. What is the rate of interest per year?
A. 10%
B. 5%✓ Correct Answer
C. 7%
D. 4.55%
💡 Solution & Explanation
Interest = amount − principal = ₹7,700 − ₹7,000 = ₹700. Rate = interest × 100 ÷ (principal × time) = 700 × 100 ÷ (7,000 × 2) = 5%. Check: 5% of ₹7,000 is ₹350 per year, and 2 years of that is ₹700.
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