Question

A loan of rs.10,000 on simple interest is taken for as many years as the rate of interest. if the interest to be paid is rs.361, what is the rate of interest?

Answer 1

si is simple interest=361,p=10000,take time as 1 year

Answer 2

Let the interest rate be x%

The time also is x

Simple interest = Principle × rate × time

Principle = 10000

Time = x

Rate = x

Interest = 361

Doing the substitution we have :

361 = 10000 × x/100 × x

361 = 100x^2

3.61 = x^2

x = 1.9

The rate of interest = 1.9%