Question

A sum of 46875 was lent out at simple interest and at the end of 1 year 8 month the total amount was 50000 find the rate of interest percent per annum

Answer 1

Total sum of money which was lent

= 46875

Time = 1 year 8 month = 20 months

Total amount = 50000

SI = A - P = 50000 - 46875 = 3125

Rate per annum =

R = SI × 100 ÷ P × T

= 3125 × 100 ÷ 46875 × 20

= 312500 ÷ 93750

= 0.334

Answer 2

➠Question:-

A sum of $46875 was lent out at simple interest and at the end of 1 year 8 months, the total amount was $50000.Find the rate of interest per year. 

➠Solution:-

From the given information, we have

⇛P  =  46875  and  ⇛A  =  50000

Then, 

⇛Interest  =  Amount - Principal

⇛I  =  50000 - 46875

⇛I  =  3125

The value of "n" must always be in "years". But in the question, it is given in both years and months. 

To convert months into years, we have to divide the given months by 12.

⇒1 year 8 months  =  1 8/12  years  or  1 ⅔ years

So, the value of "n" is 1 ⅔ or 5/3. 

Formula for simple interest is, 

I  =  Pnr / 100 

Here, P  =  46875 × n  =  5/3 

⇒3125  =  (46875 × 5/3 × r) / 100

⇒312500  =  78125 × r

⇒312500 / 78125  =  r

⇒4  =  r 

So, the rate of interest per year is 4%.