Question

A sum of money lent out at simple interest amount to Rs 720 after 2 years and Rs 1020 after a further period of 5 years. Find the rate percent .

Answer 1

Interest = Amount after 7 years - amount after 2 years

= 1020 - 720

= 300

We have interest in 5 years = 300

Interest in 1 year = 300/5 = 60

Interest in 2 years = 120

So Principal = amount - interest = 720 - 120 = 600

SI = PxRxT / 100

120 = 600.R.2/100

R = 120/12

R = 10%