Question

7.1 Keerthi borrowed 7,000 at simple interest. After 3 years, she paid 8,470 to the lender. Find the rate
of interest per annum.​

Answer 1

Given

• Principal = ₹ 7000
• Time = 3 Years
• Amount = ₹ 8470

Explanation

✰We have to find the Interest by subtracting Principal from Amount as:-

Amount = Principal + Interest

₹ 8470 = 7000 + Interest

₹ 8470 - 7000 = Interest

₹1470 = Interest

✰Now, We can find the Rate of interest using simple interest formula as:

We Know that:-

➞ Simple Interest = PRT/100

➞ 1470 = 7000×R×3/100

➞ 1470 = 70 × R × 3

➞ 1470/70 × 3 = R

➞ 21/3 = R

➞ R = 7%

Hence,

• The Rate of the Interest will be 7%.