Ashok took a loan of Rs. 15000 for 3 years at simple interest. If the total interest paid is Rs. 2700. What is the rate of interest per annum?

Options

A. 18
B. 5.4
C. 9
D. 6

Answer

To find the rate of interest per annum for Ashok's loan, we can use the formula for simple interest:

\[ \text{Simple Interest (SI)} = \frac{P \times R \times T}{100} \]

Where:
- \( SI \) = Simple Interest
- \( P \) = Principal amount (the initial loan)
- \( R \) = Rate of interest per annum
- \( T \) = Time in years

### Step 1: Identify the values from the question
- Principal amount \( P = 15000 \) Rs
- Total interest paid \( SI = 2700 \) Rs
- Time \( T = 3 \) years

### Step 2: Substitute the known values into the formula
We need to find \( R \), so we rearrange the formula to solve for \( R \):

\[ R = \frac{SI \times 100}{P \times T} \]

### Step 3: Substitute the values into the rearranged formula
Now, substituting the values we have:

\[ R = \frac{2700 \times 100}{15000 \times 3} \]

### Step 4: Calculate the denominator
First, calculate \( 15000 \times 3 \):

\[ 15000 \times 3 = 45000 \]

### Step 5: Calculate the rate of interest
Now substitute back into the equation:

\[ R = \frac{270000}{45000} \]

### Step 6: Perform the division
Now, divide \( 270000 \) by \( 45000 \):

\[ R = 6 \]

### Step 7: State the rate of interest
Thus, the rate of interest per annum is:

\[ R = 6\% \]

### Final Answer
The rate of interest per annum is **6%**.

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