Question

A sum of Rs 468.75 was lent out at simple interest and at the end of 1 year and 8 months, the total amount of Rs 500 is recieved. find the rate of interest.

Answer 1

1 year 8 months=1(8/12)=1(2/3)=5/3 years he invest his money

then S.I for 5/3 years

given that p=468.75 A=500

so S.I=500-468.75=31.25

then r=S.i*100/p*t
=31.25*100*3/468.75*5
=4%