What annual rate of interest was paid if Tk. 60,000 earned Tk. 6000 in interest in 5 years?

What annual rate of interest was paid if Tk. 60,000 earned Tk. 6000 in interest in 5 years?

A 3

B 5

C 6

D 2

Solution

Correct Answer: Option D

In 60,000, earned 6000

In 100, earned 6000*100/60000 = 10

Thus, In 5 years interest is gained 10%

In 1 year interest is gained (10/5)% = 2%