Mr. Patel borrowed Rs. 8000 from Mr. Chobey at simple interest. After 2 years he paid Rs. 800 more than what be borrowed and thus cleared the loan. What was the rate of interest?
Correct Answer: 5
Explanation:
Rate = (Interest x 100) / (Principal x Time)
= (800 x 100) / (8000 x 2)
= 5%
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