Question

A certain sum of money becomes 2250 at the end of 2 yr and becomes 2625 at the end of 5yr. If the person recieves only simple interest, then the rate of interest is

Answer 1

Answer:

6.25%

Step-by-step explanation:

Let say Amount = P

Interest rate = r  % per annum

Amount after 2 years = P + P*2*r/100 =  (1/100)(100P + 2Pr) = 2250

100 P + 2Pr = 225000

Amount after 5 years = P + P*5*r/100 = (1/100)(100P + 5Pr) = 2625

100P + 5Pr = 262500

Multiplying 1st by 5 and substracting 2*2nd

300P = 5*225000 - 2*262500

300P = 1125000 - 525000

300P = 600000

P = 2000

puuting in 1st

100*2000 + 2*2000*r = 225000

4000r = 25000

r = 25/4

r = 6.25%