Question

A lent Rs. 5000 to B for 2 years and Rs. 3000 to C for 4 years on simple interest at the same rate of interest and received Rs. 2200 in all from both of them as interest. The rate of interest per annum

Answer 1

Concept:

Interest is the payment of an amount above the principal sum by a borrower or deposit-taking financial institution to a lender or depositor at a set rate. It is not to be confused with a fee that the borrower may pay to the lender or a third party.

Given:

A lent Rs. 5000 to B for 2 years and Rs. 3000 to C for 4 years on simple interest at the same rate of interest and received Rs. 2200

To find:

The rate of interest per annum

Solution:

Divide the annual interest amount by 12 to determine the amount of your monthly per-annum interest payment. You make $50 monthly installments if you owe $600 for the year. To determine the monthly rate, divide the annual interest rate by 12 and multiply by the number of months in the year.

Let the rate be R% p.a.

Then,

$((5000*R*2)/100) + ((3000*R*4)/100) = 2200.\\ 100R + 120R = 2200\\R = (2200/220) = 10.\\Rate = 10%$

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