Question

A sum of Rs 1600 gives a simple interest of Rs 252 in two years and 4 months the rate of interest per annum is___________.

Answer 1

the answer is 5.25... ........

Answer 2

Answer: The annual interest rate is 6.75 %.

Step-by-step explanation:

Since, the simple interest is,

$S.I.=\frac{P\times r\times t}{100}$

$\implies r = \frac{S.I.\times 100}{P\times t}$

Where, P = principal amount,

r is the annual rate of interest,

t is the time in years,

Here, P = 1600 rupees, t = 2 years 4 months = 7/3 years ( since, 1 year = 12 months, S.I. = 252 rupees,

$\implies r = \frac{252\times 100}{1600\times 7/3}$

$=\frac{25200\times 3}{11200}=\frac{75600}{11200}=6.75\%$

Hence, The annual interest rate is 6.75 %