Question

a fixed deposit has a maturity value of rs. 150000 initially purchased of rs 100000 for 3 years . calculate simple interest rate per year.

Answer 1

Answer:

simple interest rate is 5%

Step-by-step explanation:

150000-100000=50000

50000=100000*r*3/100

30r=500

r=5

Answer 2

Answer:

Interest rate would be 16.7 % ( approx )

Step-by-step explanation:

Given,

Initial value, P = 100000,

Future value, A = 150000,

Time, t = 3 years,

Thus, interest,

I = A - P = 150000 - 100000 = 50,000

Let r be the annual simple interest rate,

Then the simple interest would be,

I = P × r × t

50,000 = 100000 × r × 3

⇒ r = $\frac{50000}{300000}$ = 0.1666... ≈ 0.167 = 16.7 %