Question

A money lender charged rs 120 as simple interest on a sum of rs 400 for 4 months.the rate of interest per annum will be?

Answer 1

Given simple interest= SI = 120

Rate of Interest Per annum= R= i= ??

Time = T= n = 4 months.. 4 /12 = 0.25 year

Principal Amount = 400

we know that
Simple Interest = PTR/100

120= 400*0.25*R/100

120×100/(400*0.25)= R

120×100 /100 = R

120 = R

so the rate of interest is 120%