a person lends out 9000 on the condition that the loan is payble in 10 months by 10 monthly installments of 1000 each.find the rate of interest
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Answer:
13.33 % per annum
Step-by-step explanation:
a person lends out 9000 on the condition that the loan is payble in 10 months by 10 monthly installments of 1000 each.find the rate of interest
Amount = 9000
Monthly installments = 1000
Amount Paid in 10 installments = 1000 * 10 = 1000
Interest Paid = 10000 - 9000 = 1000
Simple interest Rate = R % per annum
Simple interest = Principle * Rate 0f interest * time/100
Time = 10 months = 10/12 Years
=> 1000 = 9000 * R * (10/12)/100
=> R = 13.33 % per annum
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