Question

A sum of Rs 25000 amounts to Rs 31000 in 4 years at the rate of simple interest what is the rate of interest?

Answer 1

Step-by-step explanation:

 From question, we have

Principal = Rs. 25000, Amount = Rs. 31000, Time =2 years

∴ S.I. = Rs. 31000− Rs. 25000= Rs. 6000

Rate =25000×26000×100=12% p.a.

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Answer 2

Given :

Principal (P) = Rs 25000

Amount (A) = Rs 31000

To Find :

Rate of interest

Solution :

Simple Interest (SI) = Amount (A) - Principal (P)

                               = 31000 - 25000

                               = Rs. 6000

We know, the formula for Simple Interest is $\frac{P*R*T}{100}$

where, P = Principal; R = Rate; T = Time

∴   Simple Interest    = $\frac{P*R*T}{100}$

⇒   Simple Interest   =  $\frac{25000 * R * 4}{100}$

⇒     6000                 =  1000R

∴        R                      =   6%

Therefore, the rate of interest is found to be 6%.