Q.If the amount becomes ₹198 in 1 year from a principal of ₹180, what will be the annual simple interest rate?
If the principal of ₹180 amounts to ₹198 in 1 year, then the annual simple interest rate is 10%.
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Interest = \(198 - 180 = ₹18\)
\[
\therefore\ \text{Rate of Interest} = \cfrac{100 \times 18}{180 \times 1}\% = 10\%
\]