Question

.A sum of 6000 gives a simple interest of 5040 in 7 years. The rate of interest p.a. is

Answer 1

The rate of interest p.a. is 12℅.

Principal amount= Rs. 6000

Simple Interest obtained = Rs 5040

Time = 7 years

Rate=?

As we know:

Simple Interest = (Principal*Rate*Time)/100

So, Rate= (Simple Interest*100)/( Principal*Time)

So, Rate= (5040*100)/(6000*7) = 12℅

Therefore the rate of interest per annum is obtained as 12℅.

Answer 2

The rate of interest per annum is 12%

Explanation:

The simple interest is given by the formula:

A = P(1 + rt)

Where,

A = Final amount = Rs. 6000 + Rs. 5040 = Rs. 11040

P = Initial amount = Rs. 6000

t = Number of years = 7

r = Rate of interest

On substituting the values, we get,

11040 = 6000(1 + (7r))

11040 ÷ 6000 = (1 + (7r))

1.84 - 1 = 7r

0.84 = 7r

r/100 = 0.84 ÷ 7

r/100 = 0.12

r = 0.12 × 100

∴ r = 12%