Question

A man barrowed 800 % for 2 years at the rate of 4% anum
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Answer 1

Given:

P¹ = Rs.800

P² = Rs.400

Time = 2 years

Difference in S.I. = Rs.40

Formula used:

S.I. = (PRT)/100

Calculation:

(P₁RT)/100- (P₂RT)/100 = 40

⇒RT(800-400) = 4000

⇒ R=4000/800

⇒ R = 5%

therefore, the rate of simple interest is 5%.