Question

Jean took out a 5- year car loan of Rs 600 000.

He paid back a total of Rs 840 000.
What simple interest rate did he pay for this load?

Answer 1

interest= 840000-600000= 240000

P= 600000

R=?

t= 5 yrs

I = prt

240000 = 600000 × r × 5

r= 240000/600000×5

r = 0.08

interest rate = 0.08× 100 = 8%