Question

a shopkeeper borrowed RS.100000 from a bank for 1 year at the certain rate of interest.he paid RS.15000 ,as the interest of the sum ,find the rate of interest of the sum???​

Answer 1

Given,

Shopkeeper borrows: Rs.100000

Interest= Rs.15000

Time= 1 year

Simple interest is the product of Principle, time, and the rate at which the principle is taken.

So,

S.I.= P*R*T

        100

From this equation by simplifying it we get,

R=S.I.*100

     P*T

So by applying the values given in the question we get,

R=15000*100

     100000*1

R=15%

∴ By further simplifying the formula of simple interest we got the formula of Rate and by using the formula of Rate we got the value of Rate which is 15%.