Question

A sum of Rs. 12,500 amounts to Rs. 15,500 in 4 years at the rate of simple interest. What is the rate of interest?

Answer 1

Simple interest = 15500 - 12500 = Rs 3000

Rate of SI =(100*3000)/(12500*4) percent
=6 percent

Answer 2

Answer:Answer:

(i) The rate of interest = 8 %

(ii) Final amount after 3/2 years = 14061 rupee (Approx)

Step-by-step explanation:

Since, An amount P is deposited in annual rate of r (in decimals) for t years and compounded half years.

Then after t years the final amount is,

(i) Here, After 1 year,

A = 13,000

t =  1/2 years

P= 12,500

Thus,

Thus, the annual rate = 0.08 = 8%

(ii) Now, P = 125,000

t = 1½ years = 3/2 years

r = 8%

Thus,