Question

10. For what rate of interest, Rs. 2000 provides interest of 400 in 2 year?

Answer 1

Answer :-

• The rate of interest is 10% per annum.

To find :-

• The rate of interest.

Solution :-

• Here, the principal, time and simple interest are given to us. We have to find the rate of interest.

We know that :-

$\underline{\boxed{\sf SI = \dfrac{Principal \times Rate \times Time}{100}}}$

Where,

• SI = Simple Interest.

Here,

• Principal = Rs 2000.
• Simple interest = Rs 400.
• Time = 2 years.

Let :-

• The rate of interest be "r" percent.

Substituting the given values in this formula,

$: \longmapsto \tt 400 = \dfrac{2000 \times r \times 2}{100}$

$\tt : \longmapsto400 = \dfrac{4000 \times r}{100}$

$\tt : \longmapsto 400 = \dfrac{4000r}{100}$

$\tt : \longmapsto 400 \times 100 = 4000r$

$\tt : \longmapsto40000 = 4000r$

$\tt : \longmapsto \dfrac{40000}{4000} = r$

$: \longmapsto \overline{\boxed{\tt 10 \% = r}}$

Hence :-

• The rate of interest is 10% per annum.

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