Question

An amount of Rs 4500 is deposited in a
bank for the Best Student Award in a school.
This amount earns an interest of Rs 540,
which is given to the student every year.
What is the rate of interest?​

Answer 1

SOLUTION

GIVEN

An amount of Rs 4500 is deposited in a bank for the Best Student Award in a school. This amount earns an interest of Rs 540, which is given to the student every year.

TO DETERMINE

The rate of interest

EVALUATION

Here

Principal = P = Rs 4500

Interest = I = Rs 540

Time = T = 1 year

Let Rate of interest = R%

So by the given condition

$\displaystyle \sf{I = \frac{PRT}{100} }$

$\displaystyle \sf{ \implies \: 540= \frac{4500 \times R \times 1}{100} }$

$\displaystyle \sf{ \implies \: 4500R = 54000 }$

$\displaystyle \sf{ \implies \: R =12 }$

FINAL ANSWER

Hence the required rate of interest = 12%

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