Question

9.
An agricultural Co-operative society gives agricultural loan to its members at the rate of
simple interest of 4% per annum. But an interest is to be given at the rate of simple interest
of 7.4% per annum for a loan taken from the bank. If a farmer being a member of the Co-
operative society takes a loan of 5000 from it instead of taking loan from the bank, then
let us write, by calculating the money to be saved as interest per annum.​

Answer 1

Given :-

• Co-operative society gives agricultural loan to its members at the rate of simple interest of 4% per annum.
• Bank gives loan at the rate od 7.4 % per annum.
• Total loan taken by farmer from Co-
• operative society = Rs.5000 .

To Find :-

• The money to be saved as interest per annum.

Solution :-

we know that, when rate is simple interest per annum ,

• SI = (P * R * T)/100 .

so,

→ SI given to Co-operative society = (5000 * 4 * 1)/100 = Rs.200 .

and,

→ SI farmed would have given to bank = (5000 * 7.4 * 1)/100 = Rs.370 .

then,

→ Total money saved by farmer = 370 - 200 = Rs.170 (Ans.)

Learn more :-

CI in 2yr is Rs. 1600 and in 3 yrs it will be Rs. 1700. Find the rate of interest.

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