Question

At what interest rate RS.8900 Will amount to RS.10324 in 2 years

Answer 1

Answer:

8% interest rate of 2 year

Answer 2

Given:

Principal=Rs.8,900

Amount=Rs.10,324

Time=2 years

To find:

The rate of interest

Solution:

The rate of interest is 8% per annum.

We can find the rate by following the steps given below-

We know that since nothing is mentioned in the question, the given amount is inclusive of the simple interest.

Now, we know that the amount obtained after interest includes the principal amount.

So, the amount of simple interest=Amount - Principal

The amount of simple interest=10,324-8,900

=Rs. 1,424

Let us assume that the rate of interest is R.

Now, simple interest=Principal×Rate of interest×Time/100

On putting the given values, we get

1,424=8,900×R×2/100

1,424=89×2×R

R=1424/178

R=8

So, the rate of interest, R=8%

Therefore, the rate of interest is 8% per annum.